Go to Questions & Answers

Q: 529 education savings plan or a 529 prepaid tuition plan: which should I invest in?

Vote up!
2
Vote down!
0
Submitted by Cindy on Tue, 06/21/2022 - 21:50, updated on Tue, 06/21/2022 - 21:50
Categories: 
Finance


Answers (1)

Submitted by Susan on Tue, 06/21/2022 - 23:03, updated on Tue, 06/21/2022 - 23:03
Vote up!
1
Vote down!
0

Some extracted from government investor education site: https://www.investor.gov/introduction-investing/general-resources/news-a.... More details can be checked from that website

In addition to traditional 529 education savings plans that allow savers to open investment accounts to save for an education, some states and a group of private colleges also offer 529 prepaid tuition plans. Prepaid tuition plans allow savers to purchase units or credits at participating colleges and universities for future tuition and mandatory fees at current prices. Both types of 529 plans offer tax benefits and have a similar impact on financial aid for post-secondary education.