529 plans to the rescue

Description

Abstract: By the time babies born in 2016 turn 18, the cost of their college educations may top $200,000. That’s if they attend an in-state, four-year public university and the $20,000 the College Board estimates they’d pay today for tuition, room, and board rises at an average of 5% annually. One tool parents can use to save for these costs is a 529 plan. This article describes the advantages of these plans — flexibility is a key one — as well as their downside.