College cost projections are continually increasing. For a private college, costs will probably be double that. Qualified tuition programs are tax favored programs established by a state.
Many states have tax favored qualified tuition programs and more are in the approval process.
College tuition prepayment plans are exactly what their name implies, prepayment plans. Savings plan trusts are tax deferred accounts in which the earnings build up tax free. In general, earnings on qualified tuition programs are free from tax within the program or account. In addition, you may make an election to treat the gift as if made over five tax years. To view the Alphabetical Master Index of all tax and IRS topics click here .