JOURNAL ARTICLE

How 529 college savings plans work.

  • Published In: Fortune.com, 2025. P. N.PAG 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Flanagan, Glen Luke 3 of 3

Abstract

The article focuses on 529 college savings plans, which are tax-advantaged investment vehicles designed to help individuals save for a designated beneficiary's future educational expenses. It clarifies that anyone over 18 can open a 529 account, not just parents, and outlines the two main types of plans: prepaid tuition plans, which allow locking in current tuition rates, and education savings plans, which cover a broader range of educational expenses. The article also discusses the tax benefits, contribution limits, and potential impacts on financial aid eligibility associated with 529 plans, emphasizing their advantages for long-term educational savings. [Extracted from the article]

Additional Information

  • Source:Fortune.com. 2025/05, pN.PAG
  • Document Type:Article
  • Subject Area:Education
  • Publication Date:2025
  • Accession Number:185158142
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