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529 Plans http://www.sec.gov/investor/pubs/intro529.htm http://www.savingforcollege.com/college_savings_201/

1. What is a 529 plan?

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs.

2. | Qualified higher education expenses allowed | Penalties for withdrawing for non-qualified expenses? | 529 College Savings Plan | Covers all "qualified higher education expenses," including: * Tuition * Room & board * Mandatory fees * Books, computers (if required) | | 529 Prepaid Tuition Plan | All plans cover tuition and mandatory fees only. Some plans allow you to purchase a room & board option or use excess tuition credits for other qualified expenses | Same as above. |

3. How does investing in a 529 plan affect state and federal taxes? Earnings in 529 plans are not subject to federal tax, and in most cases, state tax, so long as you use withdrawals for eligible college expenses, such as tuition and room and board.

4. Who is eligible for a 529 College Savings plan? Any U.S. resident or only residents of the state
Who is eligible for a Prepaid Tuition Program? Any U.S. resident or only residents of the state

5. Name the top 7 benefits of 529 Plans. (click College Savings 101 or http://www.savingforcollege.com/college_savings_101/)

All plans cover tuition and mandatory fees only. Some plans allow you to purchase a room & board option or use excess tuition credits for other qualified expenses

6. Click on Illinois to see info about the Illinois 529 plans | 5 Cap Rating | Investment Options | Fees | How can you enroll? | Bright Directions College Savings Program | yes | | | | College Illinois! 529 Prepaid Tuition Program | | Contract Prices | | |

7. What would happen to the money in the account if the child decides not to go to college? http://www.savingforcollege.com/intro_to_529s/what-is-the-penalty-on-an-unused-529-plan.php 8. What is the maximum amount of money one can deposit in a 529 savings plan?

9. How does investing in either 529 plan impact your financial aid?

10. Which 529 plan do you feel would be best for you and why? (2-3 sentences should explain it)

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