What is a 529 plan?
What is a 529 plan? A 529 plan is a state-operated investment plan that gives families a federal, tax-free way to save money for college. Authorized by Congress in 1996, 529 plans are officially known as qualified tuition programs (QTPs). 529 plans have become one of the more popular options for families saving for a child's college education. 529 savings plans are a good way to save for college and they offer great tax breaks. Though 529 plans differ from state to state, they are all exempt from federal income tax, and that can give a real bottom-line boost to your college fund. Read more Virginia 529.
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