{"version":"1.0","type":"rich","provider_name":"Acast","provider_url":"https://acast.com","height":250,"width":700,"html":"<iframe src=\"https://embed.acast.com/$/69c148bb1a160b44db9c8fcc/6aa85692c939da27958f2371?\" frameBorder=\"0\" width=\"700\" height=\"250\"></iframe>","title":"529 savings vs. prepaid plans–benefits, rules, and strategies","description":"<p>1051. Are you worried about the rising cost of college? In celebration of College Savings Month, Laura compares the two main types of education accounts: 529 savings plans and 529 prepaid tuition plans. You’ll learn their key differences and how to choose the right plan.</p><p><br></p><p><strong>Key Takeaways</strong></p><ul><li>Both 529 savings and prepaid plans offer tax-free account growth and tax-free withdrawals when used for qualified education expenses.</li><li>529 savings plans invest in market portfolios (like index funds) for higher growth potential, while prepaid plans lock in current tuition rates at state universities to hedge against rising costs.</li><li>529 savings plans cover tuition, room, board, books, computers, trade schools, and up to $20,000 per year for K–12 tuition.&nbsp;</li><li>Prepaid plans only cover tuition and mandatory fees at a preset in-state university.</li><li>Unused funds in a 529 savings account open for at least 15 years can be rolled over tax-free into a Roth IRA for the beneficiary (up to a $35,000 lifetime cap).</li><li>You can use both accounts to lock in prepaid tuition rates and a savings plan to cover many other qualified education expenses.</li></ul><p><br></p><p><strong>Discover more from Money Girl!</strong></p><p><a href=\"https://www.facebook.com/MoneyGirlQDT\" rel=\"noopener noreferrer\" target=\"_blank\">Facebook</a></p><p><a href=\"https://www.quickanddirtytips.com/money-girl-newsletterhttps://www.quickanddirtytips.com/newsletters\" rel=\"noopener noreferrer\" target=\"_blank\">Newsletter</a></p><p>Transcripts available at <a href=\"https://www.quickanddirtytips.com/transcripts/money-girl/\" rel=\"noopener noreferrer\" target=\"_blank\">QuickandDirtyTips.com</a>.</p><p>Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.</p>","author_name":"QuickAndDirtyTips.com"}