529

Tax-advantaged tuition plan

A 529 is a tax-advantaged savings plan designed for education expenses, named after Section 529 of the Internal Revenue Code.

Most commonly refers to college savings plans where investment earnings grow tax-free if used for qualified education costs: We've been putting money into a 529 since she was born.

Each U.S. state sponsors its own 529 plans with varying investment options and tax benefits.

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education

Systematic development of mind

plan · savings · beneficiary · qualified · expenses · contribution · state · financial · college · university

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Opposites
tax-advantaged account purpose

529401(k)

Tax-advantaged retirement savings account

IRA · Roth IRA · retirement account · traditional IRA · 403(b)

saving vs. borrowing for education

529student loan

Borrowed funds for tuition

student debt · FAFSA · Sallie Mae · borrowing · financial aid

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