Catching up on College Savings Plans
(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.