What is a 529 Education Savings Plan?

A 529 education savings plan is an investment account that offers tax benefits when used toward qualified education expenses for the account beneficiary. Although 529 plans offer federal tax benefits, they are sponsored by individual states. This means that while they are treated the same for federal taxes, state tax treatments can vary.

Does CollegeAmerica offer a 529 plan?

Depending on your state of residence, there may be an in-state plan that provides state tax and other state benefits, such as financial aid, scholarship funds and protection from creditors, not available through CollegeAmerica. Before investing in any state's 529 plan, investors should consult a tax advisor.

What is a 529 beneficiary?

The beneficiary (generally the child) has dedicated funds for their education. 529 funds are a way to fund the beneficiary’s education and may be able to offset some or all of what they would have had to take out in student loan debt. The beneficiary can be updated to any eligible family member of the current beneficiary.