Hard to Believe
June 8, 2018
A new survey by the investment firm Edward Jones reports only 29 percent of Americans know about 529 education savings plans. The survey also found that nearly 50% of Americans are not saving anything on an annual basis for future education expenses. With college costs soaring and student debt levels climbing, all investors should educate themselves on the fabulous tax benefits of 529 plans.
Not only can you get a tax deduction or credit for contributions to 529 plans, but your earnings also grow on a tax-advantaged basis and, when you withdraw the money, it is tax-free if the funds are used for qualified education expenses, such as tuition, fees, books and room and board.
You owe it to yourself to investigate the numerous benefits of 529 plans.