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GrogVix [38]
3 years ago
14

A 529 plan can help you save more money than a

Social Studies
1 answer:
Gnesinka [82]3 years ago
4 0

Answer:

it is a tax free.

Explanation:

A 529 plan is a saving plan in the United States. special made for the students. It is tax-advantaged savings investment which is designed to encourage people to save for the expenses to be needed in the future higher education meant for a designated beneficiary.

Although the contributions from 529 plan is not deductible, but the earnings from the 529 plan is federal tax free and when the money is taken out to pay the expenses for higher education in college, it will not be taxed.

Thus, in this way a 529 plan is more helpful to save money as it is free from tax than a normal savings bank account.

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