Series 50: Kinds Of 529 Plans

Taken from our Series 50 Online Guide

Kinds of 529 Plans

The 529 plans consist of two general types: prepaid tuition plans and college savings plans. All fifty states sponsor at least one type of plan, and many colleges and universities sponsor a prepaid tuition plan. As a result, 529 plans tend to differ in their features and benefits. Earnings from both types of plan are not subject to federal tax (and usually state tax), as long as withdrawals are made for eligible college expenses.

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