The rising cost of higher education has many people concerned that their children will not be able to afford college. If you are looking for ways to help your children, grandchildren, or other relatives with paying for college, you may want to consider a 529 Plan.A 529 Plan is an education savings plan that is operated by a state or educational institution. The purpose of the plan is to assist families with saving for the future expense of college. It is called a 529 Plan because it was created by Section 529 of the Internal Revenue Code in 1996.
Almost every state offers at least one 529 Plan, and they each have different benefits. Whatever plan you choose can be used to pay for the costs of colleges across the country. In other words, the state where your 529 savings plan is from does not dictate where you must attend college.
Thus, it is important to research the various plans offered and determine which is best suited for your needs. There are several websites available to assist you with your research of state 529 plans and even compare between plans.
