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529 College Savings Plans Welcome to the world of 529 college savings plans - a smarter way to save for college while saving taxes. The new tax-free IRS 529 Code is becoming extremely popular for those looking to get the most for their investment dollars while gaining major tax breaks. Both 529 plans and prepaid tuition plans, (authorized under Section 529 of the federal Internal Revenue Code), are established by individual states. Using these plans, you can make more contributions than any other tax-deferred savings program today. Prepaid plans let parents lock in today's prices for tuition, room and board by paying these college expenses up front, either in a lump sum or in installments. On the other hand, savings plans let you make monthly or quarterly contributions to an account which the state invests on your behalf. Both types of plans generally let anyone (a parent, grandparent, relative or friend) set up an account and make contributions, regardless of income. And most states set high ceilings on the amount you can put in -- as much as $200,000 or so in some states. To view a comparative spreadsheet simply click on one of the links featured below: 529 Plan Overviews |
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