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College Planning

College Planning

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.