|Question: How long have 529 plans been around?|
Section 529 plans, also known as qualified tuition programs, or QTPs, were created by the federal government with the passage of the Small Business Job Protection Act of 1996, a piece of legislation that actually had little to do with college savings. These plans were later modified by the Taxpayer Relief Act of 1997, the Economic Growth and Tax Relief Reconciliation Act of 2001, and the Pension Protection Act of 2006.
Note: Investors should consider the investment objectives, risks, charges, and expenses associated with 529 plans before investing. More information about 529 plans is available in each issuer's official statement, which should be read carefully before investing. Also, before investing, consider whether your state offers a 529 plan that provides residents with favorable state tax benefits.