A qualified tuition program
is a program established and maintained by a state (or agency or instrumentality thereof) or by one or more "eligible educational institutions" that meet certain requirements and under which a person may buy tuition credits or certificates on behalf of a designated beneficiary that entitle the beneficiary to a waiver or payment of qualified higher education expenses of the beneficiary (see below).
Assets in a Qualified Tuition Program
(QTP) can be rolled over or transferred from one QTP to another.
If you are not a North Dakota taxpayer, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program
The Coverdell Education Savings Account (ESA) program and the Qualified Tuition Program
(QTP/529) are similar in many ways.
3z) Qualified higher education expenses include tuition, fees, costs for books, supplies, and equipment required for the enrollment or attendance of the student at any "eligible educational institution," and amounts contributed to a qualified tuition program
5) "Qualified higher education expenses" include tuition, fees, costs for books, supplies, and equipment required for the enrollment or attendance of the student at any "eligible educational institution," and amounts contributed to a qualified tuition program
In addition, the Act also provides tax relief in the areas of distributions from a qualified tuition program
and deductibility of travel expenses for Armed Forces Reserve members.
No tax is due on a distribution from a qualified tuition program
, also called a "529 plan," unless the amount distributed is greater than the beneficiary's adjusted qualified education expenses, which are the beneficiary's qualified education expenses less any tax-free educational assistance.
Under IRC section 529, individuals may contribute to a qualified tuition program
(QTP) on behalf of any beneficiary.
Laws that gave rise to the Qualified Tuition Program
(QTP), aka 529 plan, restrict the type of investments that may be offered by QTP plan administrators such as Merrill Lynch and Alliance Capital.
If you are saving for a child's college education or planning to help a grandchild pay for higher education, you should consider a 529 college savings plan, also known as a qualified tuition program