Types of 529 plans
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529 plans is the plan to promote college education. This plan is certified by section 529 of the Internal Revenue Code. It is a tax-advantaged saving plan run by forerunner groups to promote saving for future college expenditure. In legal terms is called as qualified tuition plans supported by state agencies, states and some educational institutions. Basically there are two types of 529 plans , college saving plans and pre-paid tuition plans. Where college saving plans is an account made for the purpose of paying college expenses and pre-paid tuition plans allows a college saver to purchase credit for future university tuitions.
