One of the top priorities of many young families I talk with is to save for their children’s college. College costs are rising quickly, and parents are seeing an opportunity to help the next generation along the way.
Fortunately, the U.S. Government sees it the same way. A section of the IRS tax code--Section 529--created a special savings account, administered by the states, to help families pay for college expenses.
Here’s some information on how 529 plans work, their advantages, and three pointers to get started using one.