March 5, 2019
As proud sponsors of “Daniel Tiger’s Neighborhood,” we are inspired by Fred Rogers Productions’ mission to reach children and families nationwide with programming that instills a lifelong passion for learning. Their ambition is what motivates 529 College Savings Plans’ own mission to increase access to higher education and ease the student loan debt crisis. We want to do our part to make sure every child has the ability to reach their fullest potential.
529 college savings plans are tax-advantaged savings plans that help families save for higher education so they can be less reliant on student loans.
There are two types of plans:
College Savings Plans – You contribute post-tax money into your plan and those contributions are invested based on the specific plan and your risk tolerance. Your earnings are yours to use tax-free as long as they are used for qualified higher education purchases.
Prepaid Tuition Plans – 10 states – which include Florida, Maryland, Massachusetts, Michigan, Mississippi, Virginia, Texas and Washington – and one not-for-profit organization let you pre-purchase future tuition at a predetermined rate today. An account owner purchases full or partial years or individual units of tuition for a child, and when the child decides to go to college, the plan pays out based on tuition rates from when the account was originally opened.