The College Savings Plans Network sponsored National 529 College Savings Day this past Wednesday, 5/29/13. Many states sponsored promotions for their 529 plans, with some offering special incentives that are still in effect.
Florida, for instance, is waiving the $50 enrollment fee for plans opened from May 20 through June 30.
You can check out individual states’ events and promotions by clicking on this map.
In general, 529 plans are college savings and investment accounts sponsored by state governments. Money deposited in the accounts grows tax free, as long as the funds are used for educational purposes when withdrawn. You don’t have to be a resident of a particular state to use its plan, although some states offer additional tax benefits to in-state plan participants.
Most 529s are designed as traditional savings-and-investment vehicles, but some states offer prepaid 529 plans, which allow savers to pay tuition at certain schools in advance at current rates.