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How to Set Up a College Fund

One way to fund your child’s college education is to contribute to a 529 savings plan. While each state now operates at least one of these education savings plans, students can usually attend a college anywhere in the U.S. Although a 529 savings plan is designed similar to a 401(k) or IRA, the specific features and benefits vary among states. To get the most out of your investment and gain the maximum benefit these plans offer, it is important to understand how they work.