Do You Know Which Colleges Outside Florida Accept Florida Pre-paid Tuition?

Were you aware that Florida pre-paid college tuition funds could be spent at hundreds of colleges throughout the US, not just in the state of Florida? Who knew? Certainly, not me.

A list of approved colleges and universities is available on the Florida Pre-paid Plans website. As long as a school meets designated parameters, your pre-paid funds can be used to pay for tuition nearly anywhere.

Prepaid college plans are also known as 529 plans. Here's how 529.com describes the plans and their tax benefits:

Two Types of Plans

There are two types of 529 plans: traditional college savings plans and pre-paid tuition plans. College savings plans are the most common. Essentially, you contribute funds to the plan over time and can withdraw them tax free to pay for your college education (or other qualified education expense) wherever you decide to attend. Pre-paid tuition plans allow you to "lock-in" the price of education at today's prices. Many of these plans are flexible and allow you to attend whatever college you want. After all, it's hard to predict which college your child will go to in 18 years.

Tax Advantages

...Earnings from 529 investments aren't subject to federal income tax. If you invest in your state's 529 plan you often don't have to pay state income tax on your 529 earnings too. Some states even offer upfront tax benefits for investing in the plan.

If you live in a state that levies an income tax, it may make sense to invest in your state's plan. However, most 529 plans are open to all United States residents. You should shop around to find the best plan for you.

Unlike many retirement savings plans, there are no "income phase outs" to prevent high net worth families from investing in 529s and reaping the tax benefits.

Having plenty of options is important when it comes to college selection: The more choices you have, the more likely you are to identify an ideal fit. It's good to know that prepaid doesn't mean "Florida only."