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529 Plan Basics

A 529 Education Savings Plan account is a tax-advantaged account that is opened to help save for educational expenses of a specific named beneficiary. The account owner is typically a parent or grandparent, but can be anyone, including non-relatives.

The account owner can live in any state, can name a beneficiary in any state, and can use any 529 Plan they choose (does not have to be same state).

The funds invested in any state’s 529 Education Savings Plan can be used for qualified educational expenses anywhere.

Earnings inside of an account are exempt from federal taxation.

Contributions to a plan may be deductible against certain state income taxes.

Annual contributions to 529 Plan accounts are not limited, however the contributions are treated as gifts for federal tax purposes.

(Approval code: BF1/BFA0050)

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