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What are the advantages of a 529 plan over a 401k plan?
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The primary advantage of a 529 college savings plan is that contributions are not taxed, so you can save more money. Additionally, withdrawals from a 529 plan for qualified higher education expenses are free from federal income tax and often state taxes as well. Withdrawals may be used at any accredited college or university in the United States without penalty. Finally, 529 plans offer greater flexibility than other retirement accounts since they allow you to use the funds for anything related to higher education.