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How Independent 529 Plan Works
Independent 529 Plan allows you to prepay tuition today that your child can later use at any member college. It provides a guarantee against tuition inflation, and the flexibility to choose from some of the nations’ top colleges. Independent 529 Plan has no start-up fees, no maintenance fees, and no annual fees—and is free from federal taxes.
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Assuming that private college tuition inflation continues
at an average rate of 6% per year and an Independent 529 Plan
annual discount rate of 1%, it's like earning a 7% increase
in value each year—tax-free.
In this example, instead of paying $44,770 for tuition in 10 years, you could pay just $22,610 by prepaying today! Of course, you don’t have to buy a whole year. You can buy a fraction of a year, and reap proportional benefits.
This is a hypothetical illustration, and assumes a 6% tuition inflation rate. Actual savings and tuition rates may vary.
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to learn more about how Independent 529 Plan works: |
If you take a refund, rather than redeem your certificate for
its intended purpose, the refund will be adjusted based on the net
performance of the Program Trust, subject to a maximum return of
2% per year and a maximum loss of 2% per year.
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