03/02/2016
Qualified Tuition Programs, also known as Section 529 plans, allow you to either prepay a beneficiary's future higher education expenses or to establish a savings plan from which such expenses can be paid.
Since college tuition is projected to grow roughly at an 8% annual clip, prepaying tuition according to a set schedule can avoid higher inflation-based tuition costs down the road. Individuals can get a double benefit as a state income tax deduction may also be available, subject to certain caps, up to the amount of the contribution.
