Section 529 plan
Certified Financial Planner glossary · Certified Financial Planner
Definition
A qualified tuition program that grows tax-deferred and can pay qualified education expenses tax-free if rules are met.
Section 529 plan in plain English
Parents want college money to compound without annual tax drag, and they want qualified withdrawals for tuition and related costs to come out clean. A Section 529 plan is a qualified tuition program that grows tax-deferred and can pay qualified education expenses tax-free when the rules are met. Ownership and beneficiary choices still matter for financial aid. Do not treat a 529 as interchangeable with UGMA or UTMA; control, taxation, and aid treatment diverge, and that swap is a frequent distractor.
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