Wednesday, January 13, 2016

529 Plan Contributions (Qualified Tuition Program)

529 Plan Contributions (Qualified Tuition Program) :

A Qualified Tuition Program (QTP) also called "529 plan", formerly called a Qualified State Tuition Program (QSTP), is a program established and maintained by a state, or agency or instrumentality of a state, to allow either prepaying, or contributing to an account established for paying a student's qualified higher education expenses at an eligible educational institution. Contributions made to a QTP are not deductible on your Federal tax return. Enter it under state modifications.