A recent article from the Dallas News alerted me to a problem with the Prepaid Tuition 529 Plan in Texas. Originally, the plan let investors withdraw their funds, plus earnings, even if the designated beneficiary wasn't going to college in Texas. Now, however, the state of Texas is amending that benefit: If investors don't use their plan to pay for school in Texas, they get … [Read more...] about Are Prepaid Tuition Plans in Trouble?
We talked a few weeks ago about how the stock market crash is going to affect college savings plans. I mentioned that those of you with plans to attend school in the next year might be feeling a real pinch. Before you completely panic, I decided to take a look at what the experts are saying about 529 Plans - both for those of you who are in school, or about to start, and for … [Read more...] about 529 Plans in the Post Crash Era
The Obama Administration is proposing a series of changes to 529 Plans, reports the LA Times, in order to encourage more middle class Americans to save money for college. 529 Plans allow you to contribute after-tax dollars, which then grow tax-free until withdrawal, as long as they are used for qualified education purposes. (To learn more about 529 Plans, see Financial Aid … [Read more...] about President Obama Pushes for More College Saving Among Middle Class
Consumer Reports recently published its May edition of Consumer Reports Money in which it ranked the 88 different 529 College Savings Plans. If you aren't familiar with College Savings Plans, I recently reviewed them in our "Best Ways to Save for College" series -- check it out here. Or you can read a more in-depth analysis of 529 Plans in our section on College … [Read more...] about The Best and Worst 529 Plans for 2008
On Monday, I launched a new series on the best ways to save for college. We explored 529 college savings plans, concluding that when you carefully compare fees and state benefits, you can really score with a college savings plan. Today we are looking at the other type of 529 Plan -- the prepaid tuition plan. (By the way, if you want to know why there are two different plans, … [Read more...] about The Best Way to Save for College: 529 Prepaid Plans