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The 411 on 529s

In this May 10, 2018, file photo students walk near the Martin Luther King Jr. Student Union building on the University of California at Berkeley campus in Berkeley, Calif. A 529 is a tax-advantaged investment plan that was originally designed to pay for higher education expenses. But recent changes the tax law have increased their flexibility. They now may be used to pay for private-school tuition from kindergarten through high school or transferred to accounts to pay for expenses of disabled youth. (AP Photo/Ben Margot) In this May 10, 2018, file photo students walk near the Martin Luther King Jr. Student Union building on the University of California at Berkeley campus in Berkeley, Calif. A 529 is a tax-advantaged investment plan that was originally designed to pay for higher education expenses. But recent changes the tax law have increased their flexibility. They now may be used to pay for private-school tuition from kindergarten through high school or transferred to accounts to pay for expenses of disabled youth. (AP Photo/Ben Margot)

By Associated Press August 19, 2018 4 min read

It’s back-to-school time and let’s face it – education can be expensive.

The College Board reports that the average cost of in-state tuition, fees, room and board at a public four-year college in the U.S. was $20,770 last year. And that’s just a starting point – out-of-state tuition, private universities or graduate school can greatly increase that bill.

Yet relatively few people are aware of 529 savings plans, which can help cover costs. A recent survey by Edward Jones found that 71 percent of Americans don’t even know what they are.

A 529 is a tax-advantaged investment plan that was originally designed to save for higher education expenses. Recent changes in the tax law have increased their flexibility, and they now may be used for private-school tuition from kindergarten through high school, or transferred to other accounts to pay expenses for disabled youths.

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