529 plan

(redirected from Section 529 plan)

529 College Savings Plan

An account into which persons deposit funds to save for university-related expenses. The funds in a 529 college savings account are tax-deferred and, if used directly to pay for college, tax exempt at the federal level. They are sometimes exempt at the state level as well. The plan exists in an attempt to make post-secondary education more affordable. See also: IRA, 401(k).

529 plan

References in periodicals archive ?
Ordinarily, one drawback of gifting is that when the gift is completed, the donor loses control over the gift, but the tantalizing appeal of a Section 529 plan is that the donor can maintain control over the assets and revoke the account.
Your client can contribute to both a Coverdell Education Savings Account and a Section 529 plan in the same year and for the same child.
The report relies on information from a variety of sources, including academic research, an extensive database maintained by the College Savings Network (CSPN) on Section 529 plan features and investment options, and 66 submissions that were received in response to Treasury's request for information posted in the Federal Registry.
In Announcement 2008-17 (REG-127127-05), March 3, 2008, the IRS stated it plans to provide formal guidance on how to recognize a loss in a section 529 plan but that in the interim, taxpayers may rely upon the interpretation of Publication 970.
Many plans also have financial service fees associated with them, so it's always wise to consult a financial advisor to determine which Section 529 plan is right for you.
Keywords: Asset, Allocation, College, Savings, Taxes, Section 529 Plan
In addition, the generation skipping tax is not applicable to transfers under a section 529 plan.
To help parents and grandparents meet this mounting challenge, almost every state now has a Section 529 plan that encourages investing for higher-education expenses by offering significant tax- and estate-planning advantages.
Chapter 8 weighs the various tax-advantaged options now available to save for college such as the Section 529 plan and education savings account, as well as the subsidies available to reduce the actual cost of college, such as the Hope and Lifetime Learning Credits.
Being predetermined within a Section 529 plan is a matter entirely separate from allocating between a 529 plan and a fully taxable investment.

Full browser ?