529 Plans Helps Families Save for Higher Education
Any U.S. taxpayer, regardless of income, may establish a tax-favored college savings account for anyone - including themselves, to help pay for qualified higher education expenses.
- There are no in-state use restrictions.
- Use the proceeds at any eligible college, university, proprietary or vocational school worldwide.
Higher education expenses include tuition, fees, textbooks, supplies and equipment required to attend an eligible institution. If the student’s enrollment qualifies for at least half-time, room and board expenses are also eligible up to a specified level.
Eligible institutions include virtually all accredited, public, nonprofit and proprietary postsecondary educational institutions.
529 Plan Product Comparison
|
|
|
|
| Yes |
No |
Details |
Yes |
No |
Details |
Yes |
No |
Details |
| FDIC Insurance |
X |
|
Principal and accrued interest*. |
X |
|
Principal*. |
X |
|
Principal and accrued interest*. |
| Principal Protection |
X |
|
Guaranteed when held to maturity. |
X |
|
Guaranteed when held to maturity. |
X |
|
Guaranteed when held to maturity. |
| Minimum APY |
X |
|
2%. |
|
X |
0 |
X |
|
Offered at time of purchase. |
| Tax Benefits |
X |
|
State and federal tax advantages apply. |
X |
|
State and federal tax advantages apply. |
X |
|
State and federal tax advantages apply. |
| Enrollment Fees |
|
X |
Free of enrollment fees. |
|
X |
Free of enrollment fees. |
|
X |
Free of enrollment fees. |
It is Easy to Get Started!
Enroll online with a credit card or electronic check, or print out and mail an enrollment form. Open an account for as little as $250. And/or sign up for direct deposit through your employer (as little as $25 per pay period) or automatic deposits from your bank account (as little as $100 per month).
*On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2013.
Page Links:
- Enroll Online
- Az. 529 Plan
- Mt. 529 Plan
- Eligible Institutions