What can a 529 be used for? Beneficiaries can use the money for the cost of any computer technology, related equipment and/or related services such as internet access. The funds are most commonly used to pay for college, or an "eligible institution" which includes college, university, vocational school, or other postsecondary institutions that the government deems eligible to participate.
Who can set up a 529 plan? Anyone can set up a 529 plan and name anyone as a beneficiary- a relative, a friend, even yourself! There are no income requirements and there are no limits to the number of plans you can set up!
There are two kinds of 529 plans: pre-paid tuition plans and college savings plans. All 50 states sponsor at least 1 type of 529. Some private colleges and universities offer pre-paid tuition plans. While there are many differences between the two types of plans, the biggest one is that the pre-paid plans offer less flexibility in where the funds can be used. Use this article to get more info on the differences between the two plans.
There are a few surprising things you can do with a 529 plan like use it for yourself! Some parents decide to change careers or go back to school. They can use the funds from the 529 plan if they change the beneficiary. Use this article to find out more surprising tips on using a 529!