Insurance Glossary
A B C D E F G H I J K L M N O P Q R S T U V W 4 5
529 SAVINGS PLANS
State-administered plans designed to encourage households to save
for college education. Named after a part of the Internal Revenue
tax code, these saving plans allow earnings to accumulate free of
federal income tax and sometimes to be withdrawn to pay for college
costs tax-free. There are two types of plans: savings and prepaid
tuition. Plan assets are managed either by the state’s treasurer or
an outside investment company. Most offer a range of investment
options.
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