Section 529 Plan

Qualified Tuition Plans (also known as Section 529 Plans) are plans established to help families save and pay for college in a tax-advantaged way and are available to everyone, regardless of income. These plans, also known as qualified tuition programs, allow taxpayers to gift large sums of money for a family member’s college education, while continuing to maintain control of the funds. The earnings from these accounts grow tax-deferred and distributions are tax-free, if used to pay for qualified higher education expenses. They can be used as an estate planning tool as well, providing a means to transfer large amounts of money without gift tax.