State tuition savings programs, or “Section 529 Plans,” are college savings programs that let individuals accumulate assets on a tax-deferred basis in order to fund future college and graduate school expenses on behalf of a child or other beneficiary. A Section 529 Plan is established and maintained by a state agency, and is administered by a mutual fund company.
529 Plan features include:
Anyone can contribute, regardless of income, net worth or state residence. †
The donor maintains control of the account.
As of 2002, qualified withdrawals are completely federal income tax-free. *
A contribution of $60,000 ($120,000 for couples filing jointly) may be made to a single account and prorated for a five-year period without triggering federal gift taxes-provided that no other gifts are made to that beneficiary.
Choose from a variety of investment options
Additional information can be found at the links below.