529 College Savings Plan

Posted on June 26, 2012 | Financial Planning

With tuition costs rising every year, saving for college is a top priority for most families with children. A 529 savings plan, also called a qualified tuition program, allows you to build up savings to pay for qualified higher education at eligible institutions using tax-free dollars. 529 plans were named after a section of the tax code and are offered through states.

There are three types of 529 plans: traditional savings plans, prepaid tuition plans, and independent plans.