What is a 529 plan? | A program that:
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What tax benefits does it offer? |
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What can it be used for? | Qualified withdrawals are those used for qualified higher education expenses, including1:
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Where can it be used? | Any eligible educational institution2 around the country, including:
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Who can open a 529 plan account? |
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Who can be a beneficiary? |
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1 Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.
2 An eligible educational institution is a post-secondary institution that is eligible to participate in a student aid program administered by the U.S. Department of Education.
3 In the event the donor does not survive the five-year period, a pro-rated amount will revert back to the donor's taxable estate.