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Are education savings plans tax-free?

Education savings plans offer tax-deferred growth, and withdrawals are tax-free when used for qualified education expenses. These plans remain under the control of the donor, usually a parent. Prepaid tuition plans enable account owners to lock in current tuition rates for future attendance at selected colleges and universities.

Can a 529 savings plan be used for college expenses?

Withdrawals from a 529 savings plan can be used for college and K–12 qualified expenses. Qualified expenses include tuition, fees, room and board, and related costs.

How do I open a college savings plan online?

Open an Account Online You can browse through many different federal and state options. To see what’s available, check out the College Savings Plan Network. Remember that you aren’t restricted to buying a plan only in your home state. Some plans are offered to anyone, whether you live in the state or not.

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