state-sponsored 529 plans

Some parents have the mistaken idea that state-sponsored 529 plans are only for families who plant to send their children to a state school. That idea is false because of the difference in the two types of 529 plans: prepaid programs and savings programs. States with prepaid tuition contracts that cover in-state tuition will allow you to transfer the value of your contract to private and out-of-state schools. For example, Utah 529 Plan. Sometimes you may not get the full value of it though, depending on the state. Now if you choose a 529 savings program, the full value of your account can be used at any accredited college or university in the country.