|If I open a 529 account, will my child's choice of college be restricted?|
It depends on the type of 529 plan you open. There are two types of 529 plans--college savings plans and prepaid tuition plans. With a college savings plan, your child can use the money at any college in the country and abroad that is accredited by the U.S. Department of Education. By contrast, with a prepaid tuition plan, your child will only receive the maximum benefits under the plan if he or she attends one of the colleges in the plan. If your child chooses a different school, you may pay a penalty.