Qualified tuition programs (QTPs)— also called 529 plans, after the section of the tax code that allows them, specifically IRC §529— are programs set up by the state or by an eligible educational institution that allows taxpayers to contribute to either a fund that prepays qualified ...
Are sec. 529 plans a better choice than education IRAs? (qualified tuition programs vs. individual retirement accounts, IRC section 529)Moore, Philip E
529 college savings plan (redirected fromQualified Tuition Program) Acronyms 529 College Savings Plan An account into which persons depositfundsto save for university-relatedexpenses. The funds in a 529 college savings account aretax-deferredand, if used directly to pay for college,tax exemptat the...
Yearly limit on amount participant can defer from income Yes, Internal Revenue Code (IRC) limits apply No IRC limits, but plan limits are possible Requires age when distributions must begin Yes, by IRC mandate, unless still working at company where the 401(k) plan is, subject to 5% owner...
500 in 2024 and $31,500 in 2025. Based on the hours worked, if they are paid a 12-month salary, $4,500 worth of work conducted in 2024 is paid out in 2024. Under IRC Section 409A, the $4,500 from 2024 is considered non-qualifying deferred compensation that meets the requirements ...