ERIC Number: ED657659
Record Type: Non-Journal
Publication Date: 2024-Feb-27
Pages: 16
Abstractor: ERIC
ISBN: N/A
ISSN: N/A
EISSN: N/A
Tax-Preferred College Savings Plans: An Introduction to 529 Plans. CRS Report R42807, Version 11. Updated
Brendan McDermott
Congressional Research Service
Families may choose to save for college or elementary and secondary education expenses using tax-advantaged qualified tuition programs (QTPs), also known as 529 plans. This report provides an overview of the mechanics of 529 plans and examines the specific tax advantages of these plans. Specifically, this report is structured to first compare "savings" and "prepaid" 529 plans and, second, to examine the income and gift tax treatment of 529 plans, using a stylized example to illustrate key concepts. The report also examines the tax treatment of rollovers and the interaction of 529 plans with other education tax benefits and looks at how 529 plans are treated in the federal needs analysis for financial aid. Finally, the report summarizes recent legislative changes.
Descriptors: Tax Credits, Tuition, Paying for College, Student Financial Aid, Investment, Financial Support
Congressional Research Service. Web site: https://crsreports.congress.gov/
Publication Type: Reports - Descriptive
Education Level: Higher Education; Postsecondary Education
Audience: Policymakers
Language: English
Sponsor: N/A
Authoring Institution: Library of Congress, Congressional Research Service (CRS)
Grant or Contract Numbers: N/A