Fiction: I have to invest in a 529 college savings plan sponsored by my state of residence.

Fact: Most 529 college savings plans do not require that the account owner and student beneficiary reside in the state that is sponsoring the 529 plan. Conversely, most 529 prepaid tuition programs do restrict enrollment to the state residence of either the account owner or the beneficiary. There are some exceptions to this; the Alabama prepaid program, for example, is open to residents of all states.


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