Planning Ahead

Saving For Education

What is a college savings plan?

A college savings plan allows people to make contributions into an account, grow the money tax free, and then make withdrawals to pay for their dependent’s higher education expenses. Some states also exempt the earnings from 529 accounts from state taxes, as well as allow state tax deductions for contributions.


This is a web preview of the "The Handy Personal Finance Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App