529 College Savings Plan
The 529 College Savings Plan is an investment program designed to help you save for educational expenses at almost any college or other accredited educational institution with significant tax advantages. Some of the tax benefits include:
- Investments grow tax-deferred
- Qualified distributions are tax-free when used for education expenses
- Contributions may be tax-deductible in some states
You may establish an account on behalf of your self, child, niece, nephew, grandchild or family friend. The money in your account grows free from federal taxes so potential earnings accumulate faster. The program is offered through Vanguard and a portfolio of 19 funds is available.
The Vanguard 529 College Savings Plan also offers Upromise® Rewards, a free service that gives back a percentage of what you spend at hundred of America's leading companies. That money can also be transferred automatically to your account (subject to minimum transfer amount of $50).