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529 Plan

A plan that allows for the prepayment of qualified higher education expenses at eligible educational institutions.

Also known as a "qualified tuition program", or more fully as a "section 529 plan".

The prepayment may be in the form of a contribution to an account established specifically for paying higher educational expenses. There is no income restriction for individuals who want to contribute to a 529 plan; however, because contributions cannot exceed the amount that sufficiently covers the expenses of the beneficiary's qualified higher education, individuals should take care not to over-fund the 529 plan.





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