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Only 2.5 percent of all families had 529 college savings accounts in 2013. [3] As of August 2020, more than $360 billion was invested in 529 college savings plans. [4] There are two types of 529 plans: prepaid plans and savings plans. Prepaid plans Prepaid plans allow one to purchase tuition credits at today's rates to be used in the future.
A 529 plan is a college savings plan that provides tax advantages when used for qualifying purposes. A 529 plan is something like a Roth IRA or 401(k) plan designed for educational savings.
Key takeaways. 529 plans are tax-advantaged accounts that allow a beneficiary to use the funds for qualified education expenses. Funds contributed to a 529 plan are allowed to grow tax-deferred.
As of 2025, the contribution limits to 529 college savings plans range from a low of $235,000 to a high of $575,000. And here are the states with the highest contribution limits:
California’s plan, ScholarShare 529. California’s ScholarShare 529 is available to residents of any state, and it includes funds from TIAA-CREF, Vanguard, T. Rowe Price and others. The plan ...
The two types of 529 plans include: An education savings plan that allows you to open an investment account that can be used for future education expenses, including tuition, room and board, books ...
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