College costs may be at all-time highs, but with the 529 college savings plan, a state-sponsored tuition program, you’ll enjoy tax advantages…and all the advantages that come with enabling someone you care about to earn a higher education.
 
The plan combines tax benefits with professional portfolio management and is designed specifically for investing and saving for higher education expenses. It offers several advantages:   

• Flexible contribution limits 
• Anyone can contribute on behalf of a specific beneficiary 
• Depending on which plan is chosen, total combined contributions for each beneficiary can be as little as $50 or as much as $246,000 
• Individuals can generally contribute up to $55,000 of the total amount in a single year 
• For married couples, contributions can be up to $110,000 of the amount, without tax consequences, provided other financial gifts are not given in a five-year period 
• Tax-free earnings
  These plans offer tax-free qualified withdrawals and allow the ability to claim deductions for college tuition expenses
• No income limits
  Investors can contribute to the plan regardless of their income 
• Controlled disbursements
  Withdrawals cannot be made from the account without the owner's consent 
• Unlimited choice of colleges
  Assets can be used at any accredited institution of higher learning in the United States
• Accommodating beneficiary options
  Should the designated beneficiary not need the funds, or if there is excess after paying for college, the account may be transferred to certain, specified relatives of the original recipient
  

Considerations:
Assets must be used for higher education, and nonqualified withdrawals can be penalized up to 10% on earnings. Further, subsequent beneficiaries must be related to the original recipient and named in advance.