What is a 529 plan?

Named after Section 529 of the Internal Revenue Code (IRC), these plans were originally designed to cover postsecondary education costs. Their scope has greatly expanded in the last decade. In 2017 and 2019, respectively, Congress passed legislation allowing 529 plans to cover the costs of K-12 education and apprenticeship programs.

Should you consider a 529 plan?

If you’re looking to save money for your child’s education, consider a 529 plan. A 529 plan allows you to make tax-free withdrawals to pay for qualified education expenses, such as college tuition and fees. What Is a 529 Plan?

What is a private college 529 plan?

The Private College 529 Plan is a separate prepaid plan for private colleges sponsored by more than 250 private colleges. Educational institutions can offer a prepaid tuition plan but not a college savings plan. The first education savings plan was a prepaid tuition plan: the Michigan Education Trust (MET) was created in 1986.