529 College Savings Plan

This plan allows parents, grandparents, and other interested individuals to save money for college education expenses in a special tax advantaged account. It is designed to help families and others save in order to meet the increasing costs of higher education and is very similar to investing in a mutual fund. The term 529 refers to the Internal Revenue Code section that grants individual states the ability to offer tax advantaged savings accounts to the public. These state-based programs differ from state to state, creating competition among them to offer the best programs. As a result, most states allow non-residents to participate in their plans. Our Wayne Hummer professionals can help clients determine which plan best suits their goals for education savings.