how a 529 works | BTCC Knowledge

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How does a 529 plan work?

529 plan funds are held at a brokerage, and owners can choose investments, adjusting risk levels based on the beneficiary's age. Investors are not required to use their home state's 529 plan and should consider fees, investment options and tax benefits when selecting a plan.

What is a 529 college savings plan?

Another type of 529 plan is the prepaid tuition plan. The difference between this and the 529 college savings plan is that it allows account holders to purchase credits or “units” at participating educational institutions that can be applied in the future toward tuition and fees for their child.

Does a 529 plan make sense?

If you want to help send your child off to college with as little debt as possible, a 529 makes sense given all the tax benefits. Another type of 529 plan is the prepaid tuition plan.

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