🏫 College Advising

A 529 college savings plan offers which primary advantage?

A Guaranteed admission
B Tax-free growth and tax-free withdrawals when funds are used for qualified education expenses
C Free tuition
D Only for public universities

✓ Correct Answer: Option B

529 plan: state-sponsored investment account. After-tax contributions grow tax-free; withdrawals tax-free for qualified expenses (tuition, room, board, books, computers). Many states offer tax deductions for contributions. Can transfer beneficiary. New: unused funds can roll to Roth IRA.

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