The only rule is that the beneficiary must be a U.S. You can open an account for a child, grandchild, friend, or even yourself. Your choices will depend on how comfortable you are with risk and when you expect your student to need the money.įind out more about choosing your investments What's a beneficiary?Ī beneficiary is the future student, or the person you open the account for. There are options for every level of investor which are described in detail in the Disclosure Booklet and Tuition Savings Agreement. ![]() See how you can benefit by saving with the Direct Plan How much financial knowledge do I need to start investing in the plan? If you're a New York State taxpayer, you can also benefit from the state tax deduction.** As an account owner, you'll pick investments, assign a beneficiary, and determine how the money is used. Just about anybody can open a 529 account-parents, grandparents, other relatives, friends-as long as he or she is a U.S. Learn about the Direct Plan's tax benefits Owners and beneficiaries Who can open a 529 plan account? Your earnings grow federally tax-deferred, qualified withdrawals are tax-free,* and some states (like New York) have other tax benefits as well.** What makes these savings vehicles so powerful? It comes from Section 529 of the Internal Revenue Code, which specifies the plan's tax advantages. ![]() 529 plans are usually sponsored by states. It's a type of investment account you can use for higher education savings. Wondering how a 529 plan can help you save for your child's future? First, you'll need to know some basics.
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