P A Y I N G F O R C O L L E G E13 Section 529 Plans Two general types Two general types – Prepaid Tuition Plan - today's rates for future college needs – College Savings Plan - invest in account you can control Each State has their own plan and others are available through investment companies Each State has their own plan and others are available through investment companies Contributions grow tax-deferred Contributions grow tax-deferred Withdrawals tax-free if used for college Withdrawals tax-free if used for college Many states offer tax-deduction for contributions Many states offer tax-deduction for contributions Two general types Two general types – Prepaid Tuition Plan - today's rates for future college needs – College Savings Plan - invest in account you can control Each State has their own plan and others are available through investment companies Each State has their own plan and others are available through investment companies Contributions grow tax-deferred Contributions grow tax-deferred Withdrawals tax-free if used for college Withdrawals tax-free if used for college Many states offer tax-deduction for contributions Many states offer tax-deduction for contributions
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