0
Are 529 college savings plans set up with pre-tax or after-tax money?
Wiki User
∙ 16y ago
Qualified tuition programs (QTPs) are also called "529 plans." States may establish and maintain programs that allow you to either prepay or contribute to an account for paying a student's qualified education expenses (defined later). Eligible educational institutions may establish and maintain programs that allow you to prepay a student's qualified education expenses. If you prepay tuition, the student (designated beneficiary) will be entitled to a waiver or a payment of qualified education expenses. You cannot deduct either payments or contributions to a QTP. For information on a specific QTP, you will need to contact the state agency or eligible educational institution that established and maintains it. Generally, the investment gains are either favorably or not taxed.
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
What is college savings?
Money put aside for a future college education.
When and how should I set up my child's college savings account?
You should start saving for you child's college savings account as soon as possible. A really good college savings plan is the 529 plan. With this plan you can set aside money for your child's college education and it will continue to grow tax free.
Do I need a 529 college savings plan for my son?
Depends. Using the 529 college savings plan is a great way to save money for the specific use of college. However, you may find a higher yield if you invest in CD or bonds.
What is a characteristic of the college savings plan?
it is administered only by states
What do the numbers mean in a 529 college savings plan?
The 529 college savings plan helps people save money for college. The 529 comes from the Internal Revenue Service code section that created the savings plan in 1996. This plan is operated by the university or college.
the amount of money from a 529 college savings plan investment is dependent upon?
the performance of the market in which its invested
The amount of money from a 529 college savings plan investment is dependent upon what?
the performance of the market in which its invested
How would you use deposit in a sentence?
Example sentence - My grandparents deposit money in my college savings account on my birthday.
The amount of money you make on the college savings plan investment is dependent on?
For apex it's "the market performance of the investment"
What is a RESP?
A RESP is a registered educational savings plan. It is a plan that allows you to save money for college and education that is tax free.
How are money market savings accounts different from regular savings accounts?
A money market savings account is a special kind of savings account. Money market account holders receive more money on their return. Money markets are secure.
Put Money Into Different Accounts?
You can start investing money from the time you are a child. There are easy ways on how to invest money that will give you a substantial savings when you reach college. Children can begin saving money in a bank at home and then take what they save to a bank and start a savings account. Parents can invest money though savings bonds and trust funds that will gain interest on the amount invested. Other options on how to invest money include putting money in stocks or bonds.
