Section 520 - A Financial Planner's Dream
Section 529 Plans are so superior that they will soon make tuition prepayment plans obsolete. Even so, the state will continue its U. Plan for conservative investors who are uncomfortable with stock market risks. Financial planners agree that the 529 plans blow away the Education IRA as a college-savings tool. For one thing, with an annual investment maximum of just $ 500, an Education IRA is unlikely to grow large enough to cover the estimated $ 180,000 that today's newborns are expected to need for a typical state college.
Another potential benefit of a Section 529 Plan is the likelihood that money in it will be considered part of the parents' assets instead of the child's. In computing financial aid,schools count assets in a child's name more heavily than assets in the parents' names. |