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529 College Savings Plan

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529 College Savings Plan

What is a 529 Plan?

A 529 plan is a tax-advantaged savings plan designed to help families save for future education costs. Officially known as a Qualified Tuition Program (QTP), a 529 plan is sponsored by a U.S. state and are authorised under Section 529 of the U.S. Internal Revenue Code.

There are two main types of 529 plan:

  • Prepaid tuition plans: allow future tuition costs to be paid at current rates.
  • Education savings plans: allow funds to be invested and used towards eligible education expenses.

 

Contributions to a 529 plan are generally not deductible for federal income tax purposes. However, earnings can grow tax-free and withdrawals may be tax-free when used for qualified education expenses. You should consult your plan administrator or tax adviser for guidance on your individual circumstances.

 

For more information about 529 plans, please visit:

 

Using a 529 plan at the University of Aberdeen

If you have a 529 plan, you may be able to use it to help fund your studies at the University of Aberdeen.

The University of Aberdeen is a U.S. Title IV approved institution (School Code: G09368). You should confirm with your 529 plan administrator whether your plan can be used for study at the University.

If any documentation requires completion by the University, please send it to the Tuition Fees team at tuitionfees@abdn.ac.uk 

In most cases, payments from a 529 plan are issued directly to the plan holder, who is then responsible for paying the University. Information on how to make a payment can be found on our Making a Payment page:

Making a Payment (opens in a new window)

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