529 College Savings Plan Comparison
529 college savings plan are one way that college costs can be planned in advance for, and these plans make saving for college much easier for a number of families. These plans were first allowed by the IRS in the year 1996, and today there are many of them in operation. A 529 college savings plan is created by either an educational institution or a state agency, and is intended to help families save up for future college expenses. This is not one of the highest interest savings account options that can be found, but there is no risk involved, and this is important because the money saved will be needed for college later on.
A student savings account is available in many different types, and this was done so that college would be more accessible to everyone. A 529 college savings plan is available in two main types, a savings plan or a prepaid plan. The savings plan type can not be offered by any public institutions of education, because the value of the account can fluctuate depending on the market conditions and your contributions are invested. Prepaid plans are one of the top savings accounts for college costs, and these can be offered by colleges and universities. With this plan type you pay the tuition costs at a public college before college is started.
Choosing a 529 college savings plan should be done very carefully, because there are a variety of these plans to choose from. Each state offers at least one, and sometimes several, and a number of colleges also have these accounts available. This type of plan can also offer benefits concerning child savings account taxes so that the tax liability is significantly lower, if there is any liability at all. Using a 529 college savings plan can be a shrewd financial move for many, and this is true no matter what age the children in your family may be.