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Insurance Definition: 529 SAVINGS PLANS

By Compuquotes Team on March 27th, 2008

529 SAVINGS PLANS:

Definition:

  • State-administered plans designed to encourage households to save for college education. Named after a part of the Internal Revenue tax code, these saving plans allow earnings to accumulate free of federal income tax and sometimes to be withdrawn to pay for college costs tax-free. There are two types of plans: savings and prepaid tuition. Plan assets are managed either by the state's treasurer or an outside investment company. Most offer a range of investment options.

Information provided by Insurance Information Institute

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