Quick Definition

A 529 Plan is a tax-advantaged savings plan designed to encourage saving for future education costs, primarily for a designated beneficiary.

Examples

• 1Parents opening a 529 Plan to save for their child's college tuition.
• 2Grandparents contributing to a 529 Plan as a gift to support their grandchild's higher education.
• 3An individual starting a 529 Plan early to maximize the potential growth through compound interest.
• 4Using funds from a 529 Plan to pay for tuition, room, and board at a qualified university.

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