What are the different types of 529 plans?

There are two types of 529 plans—college savings plans and prepaid tuition plans. The college savings version allows earnings to grow tax-deferred and withdrawals are tax-free when used for qualified education expenses. Every state offers at least one of these types of plans.

What kind of college savings plan is best?

A 529 savings plan, which gets its name from the tax code, is the go-to option for investing for college because of the tax benefits it offers.

How many types of section 529 plans are there?

two types
There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. In addition, a group of private colleges and universities sponsor a prepaid tuition plan.

What is the difference between a 529 A and 529 C?

In most cases, Class A shares are suitable for long-term investors. Class C shares do not have a front-end sales charge, but come with higher annual fees, often making them a better choice for investors with a shorter time horizon.

What are the 4 types of savings accounts?

Basic Savings Account. Also known as passbook savings accounts, these accounts are a good introduction to earning interest and saving money.

  • Online Savings Accounts.
  • Money Market Savings Accounts.
  • Certificate of Deposit Account.

    • What is a class 529 A?

    529 plans are officially known as Qualified Tuition Plans, a tax-advantaged investment vehicle designed to help families pay for future education expenses. There are two types of 529 plans: savings plans and prepaid tuition plans. Both are generally sponsored by states or state agencies.

    Who owns 529 account parent or child?

    Control the money and choose among many investment options. Unlike a custodial account that eventually transfers ownership to the child, with a 529 savings plan, the account owner (not the child) calls the shots on how and when to spend the money.