College Savings and 529 Plans – What You Need to Know – Episode 232
With the cost of college in the US skyrocketing, many parents find they need to begin saving almost immediately if they want their children to be able to attend. One avenue for doing that is the 529 Plan, which comes with both benefits and costs.
Lately, though, the 529 has become less popular among savers. The reasons? High tuition, market uncertainty, and no guarantee that a job will be waiting for their kids when they graduate, among others.
So now the question remains: Is the 529 Plan still a good college savings vehicle? What are the rules, and what other potential options exist? Find out what you need to know from host Johnny Dean and “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!
Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing. (19-LPL)
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