One of the largest expenses a family will incur is very likely the cost of a child’s education. To assist families with this financial responsibility, many programs that encourage saving are available.
The most common are the 529 college savings programs, which were originally intended specifically for post-high school studies. The newly implemented tax law, however, now allows them to help cover the cost of education prior to the college years.
Simply stated, the student is referred to as the beneficiary of the account. Any loved ones can contribute into the account, and 529 contributions grow tax-free. If used for a qualified educational expense, the monies come out of the account tax-free as well.
Clearly, the new legislation offers families several incentives to save for