First, allocating funds to a
529 plan is a prior decision that is now essentially unrelated to the portfolio choice within the plan.
When Prudential clients complete free registration with BabyMint, it rebates some of each eligible purchase into their
529 plan or other college savings account.
To help parents and grandparents meet this mounting challenge, almost every state now has a Section
529 plan that encourages investing for higher-education expenses by offering significant tax- and estate-planning advantages.
In 2018, 44% of parents reported saving for their child's college education in a
529 plan, so the number of parents saving is increasing.
When cash is short and private school costs are high, a $10,000 tax-free distribution from a
529 plan may be welcome.
A
529 plan is a tax-advantaged savings plan authorized by the IRS to encourage saving for future education costs.
Under the new law, starting with the 2018 tax year, you can withdraw $10,000 per student per year from a
529 plan to pay for primary or secondary education.
The
529 Plan has grown by more than $120 million in the past two years; what do you attribute the growth to?
The House Ways and Means Committee's tax plan, released Thursday, expands the qualified expenses associated with a 529 college savings plan, which "may help to reduce parents' concerns" about limitations associated with the plans and make investing in a
529 plan "more palatable," according to Martha Kortiak Mert, chief growth officer for Savingforcollege.com.
If your plan doesn't provide this flexibility, then you are allowed by federal law to roll over your college savings plan account to a different
529 plan (college savings plan or prepaid tuition plan) without penalty once every 12 months.
The PATH change is that a computer will qualify as a higher education expense for
529 Plan purposes.
Colorado's most popular
529 Plan is Direct Portfolio.
