The Two Main Types Of 529 Plans
December 11th, 2007 | by admin |There are two main types of 529 plans - the college savings plans and the prepaid tuition plans. In a college savings plan, the investor can use the money of the plan to pay for the college expenses of the beneficiary in any college within the state or even the nation. But the prepaid tuition plans are plans in which parents make fixed investments for their children’s further college education. The plans then allow the expenses to be paid only within instate colleges by locking in the future tuition rates, adjustable to inflation. Most states have one of the two plans, and some states have both types of 529 plans.
