Studying up on 529 college savings plans
Abstract: Two types of savings plans provide families with tax-saving strategies that also benefit their children and grandchildren. College savings plans and prepaid tuition plans are what are known in the tax community as 529 plans. These vehicles have much higher contribution limits than those for other tax-advantaged educational savings plans. Which 529 plan is better depends on one’s investing preferences and other factors. This article describes the differences between the plans, but also their common advantages, such as estate planning benefits.