529
Business & Finance abbreviation · Personal Finance
| Stands for | Qualified tuition program (Internal Revenue Code section 529) |
|---|---|
| Categories | Business & Finance |
529 stands for Qualified tuition program (Internal Revenue Code section 529), a personal finance abbreviation.
State-sponsored education savings plan whose investment growth is tax-free when withdrawn for qualified education costs, including college tuition, room and board, books, registered apprenticeships and limited K-12 tuition. Many states also give a state income tax deduction for contributions to their own plan.
Example: Grandma put her birthday money for the twins straight into their 529 accounts.
Usage notes
Named after the tax code section added in 1996. There are two kinds: savings plans invested in mutual funds and prepaid tuition plans that lock in current tuition rates. Since 2024, unused money can be rolled into the beneficiary's Roth IRA, up to $35,000 over a lifetime, if the account has been open at least 15 years. Non-qualified withdrawals face income tax plus a 10% additional tax on the earnings.
Related abbreviations
More personal finance abbreviations
- 401(a) – Qualified retirement plan (Internal Revenue Code section 401(a))
- 401(k) – Employer-sponsored retirement savings plan (Internal Revenue Code…
- 403(b) – Tax-sheltered annuity plan (Internal Revenue Code section 403(b))
- 457(b) – Deferred compensation plan (Internal Revenue Code section 457(b))
- ABLE – Achieving a Better Life Experience account
- AER – Annual equivalent rate
- APR – Annual percentage rate
- APRC – Annual percentage rate of charge
- APY – Annual percentage yield
- AU – Authorized user
- BT – Balance transfer
- CIBIL – Credit Information Bureau (India) Limited