530 QTP's [Qualified Tuition Programs]
A 530 QTP is not a tax reduction device.
At best, it is a tax deferment device.
The best source of public information on 530 plans is Wikipedia.
The second best source is IRS Publication 970.
A 530 QTP is not a tax reduction device.
At best, it is a tax deferment device.
The best source of public information on 530 plans is Wikipedia.
The second best source is IRS Publication 970.
There is no deduction for contributions to a 530 QTP.
The advantage is that you can put money into a 530 QTP to pay for future college expenses, let the interest grow, and when you later withdraw the money to pay for qualified college expenses, the additional interest is not taxable.
There is no limit to the amount you can contribute to a 530 QTP, but if you take any money out that is not used for qualified college costs, that portion is taxable.
Although the programs are called Qualified Tuition Programs, the following expenses qualify:
Differences from the Section 529 Coverdell.