What You Need to Know About Prepaid College-Tuition Plans

You pay in advance—often with a guarantee your funds will grow to meet future college costs—but there are requirements and limits

香蕉视频苹果下载For some families, paying college tuition in advance may be a viable—and money-saving—option.

Like 529 college-savings plans, prepaid-tuition plans offer tax-advantaged savings. But prepaid-tuition plans have a key difference. While the returns of a 529 savings plan are dependent on the ups and downs of the market, prepaid-tuition plans usually guarantee that you’ll build up enough funds to meet tuition costs when your child reaches college.

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