Saving for college can feel like an overwhelming task, especially since over the past decade, the average cost of college tuition has risen at more than double the rate of inflation. So, how do you prepare for this major expense? One of the more popular savings options is a 529 college savings plan, but what exactly is a 529 plan?
A 529 plan is a tax-advantaged investment vehicle sponsored by a state or educational institution that is designed to help families put aside funds to pay for future college costs. It's named after Section 529 of the Internal Revenue Code.
Because there are so many 529 plan options available, it's important to understand all of the aspects of a 529 plan.
In this paper you will find information on:
- The differences between a prepaid college tuition plan and 529 college savings plan
- Federal, state, gift and estate tax advantages of a 529 plan
- The impact of a 529 plan on financial aid
- And, much more!
Planning for college expenses can feel overwhelming. Reach out to me to conduct a college savings analysis to determine if a 529 plan is a good option for you and your family and get tips on how you can be doing more to prepare for this major expense.
For more information on getting your college needs analysis, email me at email@example.com. I'm happy to answer any questions you may have.
Source: The College Board, Trends in College Pricing 2014