All Articles Tagged "saving for college"
(Daily Finance) — High school graduation season is around the corner — what better time to review your 529 college-savings plans? With the economy still in the doldrums and a couple of state bills under consideration that may change the way 529 accounts are treated, parents may want to take a closer look at how those college funds are doing. 529 plans offer parents a way to save money for tuition in tax-deferred accounts. And while a number of states offer tax benefits to all residents for participating in an in-state 529 college-savings plan, some cash-strapped states may become more restrictive about who qualifies for those tax breaks in the future, says Chris Stack, managing consultant for Savingforcollege.com.
(Wall Street Journal) — After being pilloried by critics and written off by many families, 529 college-saving plans are getting better. But well-heeled investors still would be wise to spread their bets around. So-called 529 plans allow people to save for college expenses and withdraw the earnings tax-free. Many also offer a break on state income tax—savings that, in theory, an investor can roll back into the account.
(The Network Journal) – As many Americans scrounge for holiday deals, they might consider plunking those dollars saved into a college-savings fund for their children or grandchildren. But what’s the best place to park money that needs to grow at a rate to keep up with rapidly rising tuition costs? It might be a 529 plan, where tax-free earnings can give you an edge. But the plans aren’t all created equal. A 529 college-savings plan allows you to invest money for a family member that you later withdraw income-tax-free to pay for the relative’s education costs at almost any accredited college, community college or vocational school. It’s funded with after-tax money but grows tax-free to cover qualified items including tuition, room and board and textbooks.