Skip to main content
  1. News
  2. Business & Finance
  3. Personal Finance

Which 529 savings plan will work for your family?

See also

College tuition increases every year. The fear of student loan debt weighs heavily on parents. No one wants their child to start life buried in debt. College savings plans are a great way for parents to start helping now.

There are basically two types of 529 plans. These plans are offered by private companies or you can sign up with a state plan. They offer parents a plan that has tax advantages or one that locks in current credit costs. It’s important for parents to choose the best plan for their situation.

What is a 529 College Savings Plan?

This college savings plan offers tax advantages. It allows the student to use accumulated assets for any accredited or vocational school inside the United States. There are some foreign schools which qualify as well. Students may use the money for tuition, books and any other mandatory fees. There are no tax liabilities on the investment gains. There are 35 of the 50 states which offer tax deductions or tax credits for 529 College Savings Plans.

How do 529 Prepaid College Plans differ?

There is no savings account. Parents may purchase tuition credits within their state’s university system. As we continue to watch tuition costs increase year after year, this option takes advantage of today's price. It’s a smart choice for parents, but limits the child’s schooling options to those within their own state. Parents must be sure that their child will remain in-state. These plans are only offered by the state, not private companies.

Which one do you choose?

All states offer the 529 College Savings Plans but they don’t all save on taxes. Families living in one of the 35 states that offer tax relief will also give a student the freedom to choose a college out of state.

In one of the states that does not offer tax relief? Look for a plan that focuses on low account minimums, multiple investment options and low fees.



  •  Day 17
    Israel continues their ravaging bombardment on Gaza as the conflict wages on
  • MH17 victims arrive home
    40 bodies of the MH17 plane crash return to a somber homecoming in Holland
    Top News
  • Military advisers to Ukraine
    President Obama announces the deployment of military advisers to Ukraine
  • Bubonic plague in China
    A bubonic plague outbreak in Yumen prompts China to quarantine the city
    World News
  • Air Algierie disappearance
    A flight headed from Burkina Faso to Algeria disappears from radar over Mali
  • Windows Phone training portal
    Microsoft launches Windows Phone training portal in attempt to woo consumers