Guide to 529 Plans

College Savings Plan Comparison Chart

College Savings Plan Comparison Chart

This chart compares different college savings plans to help you choose the one that best suits your family's needs. Consider factors like state tax benefits, investment options, and fees as you make your decision.

529 Plans: Qualified and Nonqualified Expenses

529 Plans: Qualified and Nonqualified Expenses

You’ve put in the hard work of saving for college, and now it’s time to start using those 529 plan assets to help with a family member’s education-related costs. But before you begin withdrawing those funds, it’s important to understand the difference between qualified and nonqualified expenses.
The charts below provides an overview of some of the most common qualified and nonqualified expenses.

Guide to 529 Prepaid College Tuition Plans

Guide to 529 Prepaid College Tuition Plans

State-sponsored prepaid tuition plans lock in today's tuition rates for future use, but typically only at in-state public schools. This can be a great way to save on future college costs, but there are limitations. Consider factors like potential economic downturns and out-of-state school attendance before enrolling.

The fees, expenses, and features of 529 plans can vary from state to state. 529 plans involve investment risk, including the possible loss of funds. There is no guarantee that an education-funding goal will be met. In order to be federally tax free, earnings must be used to pay for qualified education expenses. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10 percent penalty. By investing in a plan outside your state of residence, you may lose any state tax benefits. 529 plans are subject to enrollment, maintenance, and administration/management fees and expenses.