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The best 529 for your family is going to depend on your child(ren)'s age, your investment plan and other factors. Similar to big-ticket purchases like a computer or television, you will find there are a large number of plans that fit your basic needs, and from there it's a matter of doing some research or working with your financial advisor to determine the best choice for your family.
If you don't have a financial advisor but you'd like to work with one, you have several options. Online, one of the best resources for choosing a 529 is SavingForCollege.com. You can visit SavingForCollege.com and search a list of financial advisors who specialize in 529 plans to see if there's one in your area.
If you want to enroll in a 529 plan directly, SavingForCollege.com also offers tools & calculators to determine your saving needs and compare the features of the direct-sold 529 plans.
You can sign up for most 529 plans even if you are not a resident of the state which offers the plan. The tax benefits for residents vary from state to state and five states, Missouri, Arizona, Kansas, Maine and Pennsylvania, offer tax parity to residents for investment in an out-of-state plan.
There aren't any requirements to get started. If you want to have your plan at a specific school, talk to a school officer to get started. If you want to start a general plan, talk to an authorized financial adviser in your state.
Applying for a 529 college savings plan can be very difficult for most people to do since it is based on credit. The best way to apply is to simply contact your bank and ask for a credit application.
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Could you explain how a 529 savings plan works?
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.
How does a 529 savings plan work?
A 529 plan lets you set aside money for your child's education either with a financial institution or a specific school. These plans have significant tax benefits.
What is a benefit of the 529 plan?
The 529 plan has two types of plans, either the savings plan or the prepaid plan. The 529 plan lets you save for your child's education a lot easier. The 529 plan let's you save for many different colleges.
What is the benefit of a 529 savings plan?
The 529 plan has two types of plans, either the savings plan or the prepaid plan. The 529 plan lets you save for your child's education a lot easier. The 529 plan let's you save for many different colleges.
What do the numbers mean in a 529 college savings plan?
The 529 college savings plan helps people save money for college. The 529 comes from the Internal Revenue Service code section that created the savings plan in 1996. This plan is operated by the university or college.
What is the 529 plan?
The "529 Plan" is a savings plan that is operated by the state or an educational institution to help save money for college. A "529 Plan" comparison is just a comparison of the different plans offered by various schools.
What is 529 plan?
The "529 Plan" is a savings plan that is operated by the state or an educational institution to help save money for college. A "529 Plan" comparison is just a comparison of the different plans offered by various schools.
What 529 plan?
The "529 Plan" is a savings plan that is operated by the state or an educational institution to help save money for college. A "529 Plan" comparison is just a comparison of the different plans offered by various schools.
What is a 529 plan and how does it work?
It is a tax-advantaged college savings plan.529 plan historyA 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 1998.State plans are OK for out of state colleges529 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?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 compare between plans.Tax BenefitsAs long as the plan satisfies a few basic requirements, the federal tax law provides special tax benefits to you, the plan participant.Some states (but not all) offer tax incentives to investors as well. Research your state's tax treatment.Types of 529 plans529 plans are usually categorized as either prepaid or savings plans.Savings Plans work much like a 401K or IRA by investing your contributions in mutual funds or similar investments. The plan will offer you several investment options from which to choose. Your account will go up or down in value based on the performance of the particular option you select.Prepaid Plans let you pre-pay all or part of the costs of an in-state public college education. They may also be converted for use at private and out-of-state colleges. The Independent 529 Plan is a separate prepaid plan for private colleges.Educational institutions can offer a 529 prepaid plan but not a 529 savings plan (the private-college Independent 529 Plan is the only institution-sponsored 529 plan thus far).Enrolling in a 529 planThere are two ways to invest in a 529 plan.Directly with the 529 Plan manager.Through a financial advisor.
What kind of service is Fidelity 529?
A Fidelity 529 is a college savings plan that works much like a 401(k). Parents set one of these accounts up for a child, and the child can make withdrawals from it for higher education purposes tax free.
What is the '529 Plan Comparison'?
The "529 Plan" is a savings plan that is operated by the state or an educational institution to help save money for college. A "529 Plan" comparison is just a comparison of the different plans offered by various schools.
When and how should I set up my child's college savings account?
You should start saving for you child's college savings account as soon as possible. A really good college savings plan is the 529 plan. With this plan you can set aside money for your child's college education and it will continue to grow tax free.
