State 529 Plans
529 College Savings Plans are programs established and maintained by a state or private educational institution under which a person may:
- Prepay tuition benefits on behalf of a beneficiary so that the beneficiary is entitled to a waiver or payment of qualified higher education expenses; or
- Contribute to an account that is established for paying qualified higher education expenses of the beneficiary.
Previously known as Education IRAs, Coverdell accounts are trusts created exclusively for the purpose of paying the qualified education expenses of the designated beneficiary of the trust. Contributions are NOT deductible.