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A 529 college savings plan is a special tax-advantaged account that lets parents, grandparents and just about anyone else save money toward a child’s education costs.
A 529 plan allows a participant to set up a tax-advantaged account to allow a beneficiary to use the funds for qualified education expenses. The participant deposits after-tax money into the account.
Paying qualified expenses directly from a 529 account that is owned by someone other than the student or parent may reduce a student's eligibility for need-based financial aid. [25] Paying college expenses directly from a 529 account may reduce eligibility for the American Opportunity Tax Credit, due to IRS coordination restrictions. To claim ...
A 529 plan is a college savings plan that provides tax advantages when used for qualifying purposes. ... Withdrawals for qualified expenses are tax-free, but non-qualified withdrawals are subject ...
You contribute money to 529 college savings plan as a tax-advantaged way to save for your child’s future education. But when your kid is set to matriculate, you can’t use those funds for just ...
Your first $2,000 for qualified education expenses qualify for the credit, then 25% of the next $2,000 spent. So if you have $4,000 or more in qualified expenses, you can get the full $2,500 tax ...
Opening a 529 plan is a tax-advantaged way to set aside money for college. The money you contribute can grow tax-deferred and qualified withdrawals are tax-free. While there is no federal tax ...
Qualified withdrawals include education expenses for the account’s beneficiaries, which can include tuition, room and board, computers, books and — as of the most recent tax bill — some ...