Confused about 529 College Savings Plans?

Posted by Judy Anne Cavey on Oct 26, 2011 in , , | No Comments

According to the Financial Research Corporation, families contributed 75% more in 2010 than in 2008 to these plans.

According to the article by Deborah L. Jacobs, “Collegiate Confusion”, featured in Forbes magazine, “The main appeal of a 529 is income tax savings. You put money in one of these plans and you don’t have to pay federal or state income tax on the earnings, provided the cash is withdrawn to pay for college or graduate school tuition, fees, room and board, or books. In some cases you also get a state income tax deduction for your contribution.” However, there’s more to these plans that you’ll need to be aware of.