GLOSSARY · TAX & ESTATE
529 plan
A state-sponsored education savings account whose growth is free of federal tax and whose withdrawals are tax-free when spent on qualified education costs. The beneficiary can be changed to another family member, and many states give a deduction or credit for contributions to their own plan.
Also called: 529, college savings plan, qualified tuition program
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CHAPTER · GOAL-BASED SAVINGS & ACCELERATION · STRATEGIESTax-Advantaged Accounts for Every GoalCHAPTER · GOAL-BASED SAVINGS & ACCELERATION · STRATEGIESBuilding Wealth That Lasts Across GenerationsRELATED TERMS
SOURCES
- Publication 970, Tax Benefits for Education. Internal Revenue Service.