529 College Savings Plans
With a 529 savings plan, you can save for anyone – your child or grandchild, a niece or nephew, a friend or even yourself. These plans, generally sponsored by individual states, provide a tax-advantaged way to save for qualified higher education expenses. 529 plans can also be used for withdrawals up to a limited amount for qualified elementary and secondary education expenses.
There are no income limits on what you can contribute. Plan assets are professionally managed by independent investment firms or state government agencies, and may be invested in a variety of mutual funds and age-based portfolios offered through different mutual fund companies.