Use this section to research 529 plans from every state. We provide plan information and tools that help you choose which plan is right for you. We have even rated all of the nation's 529 plans so you can quickly compare overall effectiveness of each plan.http://www.savingforcollege.com/college_savings_201/
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- State tax deductions available for residents
- Enrollment fees charged
- Do I have to be a resident to apply?
- Can I sign-up online?
- Can I change the account owner?
- Is there a tax incentive for using my state's 529 plan?
- How well does my state's 529 plan perform?
- Does my State offer to match my own contributions to an in-state plan?
- How to take advantage of your state's tax deduction
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.
Types of 529 plans
529 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.
The Real Cost of Higher Education
An excellent education for your child does not necessarily require that you spend $40,000 in today’s dollars for one year of tuition at an Ivy League school. There are many well-regarded, reasonably-priced private colleges. The average public college or university tuition is lower yet, especially for residents of the state where the school is located.
| Type of Institution | Projected 4-Year Tuition and Fees | |
|---|---|---|
| Today (Enrolling 2009) | In 18 Years (Enrolling 2027) | |
| Private College | $116,600 | $332,800 |
| Public/University (in-state resident) | $30,500 | $87,200 |
| 2 Years Community College & 2 Years Private College | $66,900 | $191,200 |
(Based on average tuition and fees for 2008-2009 as reported by The College Board® and assumed to increase 6% annually.)
Qualified Tuition Programs (529 plans)—Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs.
Coverdell Education Savings Accounts— Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs. ESAs may also be withdrawn tax-free for primary and secondary school expenses before 2011.
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