Is your 529 plan underwater?
Abstract: A 529 plan continues to be one of the most powerful tools available for financing higher education costs. They offer generous contribution limits, creditor protection, minimal impact on financial aid eligibility and various gift and estate tax advantages. Like most investment vehicles, however, these plans aren’t immune to market risk, and many have experienced significant losses over the last couple of years. This article describes an often-overlooked strategy to consider if a 529 plan is “underwater” — that is, its current value is less than the amount contributed to it.