College Financial Plans
Paying for Education –
College Plans – 529 Plans
529 plan history
A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code which created these types of savings plans in 1996.
State plans are OK for out of state colleges
529 Plans can be used to meet costs of qualified colleges nationwide. In most plans, your choice of school is not affected by the state your 529 savings plan is from. You can be a CA resident, invest in a VT plan and send your student to college in NC. Check to see if your institution is eligible under 529 rules.
Which states offer 529 plans?
Nearly every state now has at least one 529 plan available. It’s up to each state to decide whether it will offer a 529 plan (possibly more than one) and what it will look like, meaning 529 plans can differ from state to state. You should research the features and benefits of your plan before you invest, research state 529 plans and even compare between plans.
As long as the plan satisfies a few basic requirements, the federal tax law may provide special tax benefits to you, the plan participant. Some states (not all) offer tax incentives to investors as well. Research your state’s tax treatment.
Your Newbridge Financial Services Group, Inc. financial advisor can provide valuable assistance in determining how your unique financial situation qualifies for the myriad of college plans available.