Benefits of a 529 Plan: 8 Reasons to Start Saving for College Today
With the season change comes the opportunity to consider your finances and the future higher education needs of your family.
In 1996, Congress enacted Section 529 of the Internal Revenue Code. This established federal tax rules for 529 plans, which allow families to save in advance for the costs associated with higher education.
But more than 25 years later, only about 35 percent of Americans have heard of 529 plans. Of those, only one in four connect the plans with higher education savings.
And while the most well-known way to use a 529 plan is to cover expenses at colleges, universities and vocational schools, there are many other benefits to these accounts.
