Investing Terms
   401k Plan
   403 Plan
   529 Plan
   12b 1
   Agency Bonds
   Asset Management
   Bear Spread
   Bond Yield
   Bull Spread
   Call Option
   Closed End Fund
   Commodities Broker
   Convertible Bonds
   Covered Call Option
   Current Yield
   Custodial Account
   Debit Spread
   Defined Benefit Plan
   Defined Contribution Plan
   Diagonal Spread
   Fixed Annuity
   Foreign Currency Option
   General Obligation Bond
   Growth Fund
   Hedge Fund
   Horizontal Spread
   Income Fund
   Independent Broker
   Index Fund
   Index Option
   Interest Rate Option
   Life Annuity
   Limited Partnership
   Margin Account
   Married Put
   Money Market Fund
   Mortgage REIT
   Municipal Bond Investing
   Mutual Fund Investment
   No Load Fund
   Nominal Yield
   Online Stockbroker
   Online Commodity Broker
   Stock Warrant
   Option Spread
   Option Straddle
   Online Real Estate Broker
   Stock Option
   P E Ratio
   Penny Stock Investing
   Portfolio Management
   Preferred Stock Investing
   Private Placement
   Put Option
   Put Bonds
   REIT Investment
   Revenue Bond
   Secured Bond
   Short Sell
   Subordinated Debenture
   Tax Deferred Annuity
   Treasury Bill
   Treasury Note
   Treasury Bond
   Treasury STRIP
   Trust Account
   UGMA Account
   Unit Investment Trust
   Variable Annuity
   Yield To Maturity
   Yield To Call
   Zero Coupon Bond

   Insurance CE
   Marketing Training
   Contact Us


529 Savings Account

529 college plans are state sponsored education savings accounts that permits non tax deferred contributions to be made for college education tuition expenses.

Each state will set their own limit for contributions into a 529 plan. The earnings in the investment plan account grow and are distributed tax free when they are used to pay for college or other qualified higher education instutions.

Saving for college can be very difficult for many people. With the cost of housing, taxes and other expenses growing with most people, having the 529 savings plan option can give a family a certain measure of comfort knowing they are saving for college. The amount of money that grows in the 529 will vary with the performance of the investments in the account.

Our financial advisors, planners and broker dealers can provide more information and open a savings plan for you or your child.

Qualified State Tuition Programs

There are 2 types of plansor accounts : a pre paid tuition and a savings plan. Prepaid tuition plans guarantee that the investment will at least keep pace with college education tuition expenses.

529 Savings plans are managed investment funds that can be more flexible. The income in these qualified plans is not taxable. Funds used for college tuitions can be withdrawn and are also not taxable.

Tax free rollovers from one 529 plan to another are allowed for the benefit of the same beneficiary once per year.

New Rule

Under federal law, college savings are permitted to allow investors to change the investment options on their existing contributions once per calendar year. Industry observers have criticized this "once-per-year" rule as too inflexible, especially in a down market year like 2008. The IRS has recently published a notice addressing this issue. For 2009, according to the IRS, 529 college savings plans may allow investors to change the investment options on their existing contributions twice per year instead of once per year. Check with your 529 account to see if it offers this new investment flexibility before you make any changes.

Questions and Help - Ask us

American Investment Training provides a free service for our individual investors and companies with help on any investment or insurance product or accounts. Simply submit us a question. We are a top training company and we train many of the brokers and agents around the country. Our experts are true experts!

Free Finance Blogs

Copyright American Investment Training, Inc. 529 education planning and tuition account service