Margaret A. Munro - 529 & Education Savings Plans For Dummies

529 & Education Savings Plans For Dummies, 2nd Edition

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Library of Congress Control Number: 2023932630

ISBN 978-1-394-16033-4 (pbk); ISBN 978-1-394-16035-8 (ebk); ISBN 978-1-394-16034-1 (ebk)

1. Chapter 2
2. Chapter 4
3. Chapter 5
4. Chapter 6
5. Chapter 7
6. Chapter 8
7. Chapter 10
8. Chapter 11
9. Chapter 15
10. Chapter 17

1. Chapter 6
2. Chapter 9
3. Chapter 15

Welcome to 529 & Education Savings Plans For Dummies, the practical reference for those who are thinking about and planning for all types of education in the future for themselves or those nearest and dearest to them and who want an explanation of all the options pro and con that can help them save for it.

Education. Whether youve had an abundance of it or feel that youre missing a few courses here and there, youve read all the information, looked at the charts and graphs, and know that people with the best educations land better jobs and earn better pay than those who dont. So, of course, because you want the very best for yourself and your family (you do thats why youre reading this), you want everyone you know, including yourself, to have that opportunity.

That is until you look at the price tag. Youre already paying for food, housing, and clothing (not to mention phone, cable, insurance, and everything else under the sun, including dog grooming) and maybe even stashing a little bit into your retirement plan. And then, you sneak a peek at the projected cost of private school or college for the year in which your student expects to begin. And just as you never look at the least wrinkled car in a car crash, your eye automatically drifts to the highest number on that chart of projected costs. And you begin to see stars.

Theres no question: Education costs continue to soar, even when the rest of the economy stagnates, and this reality is not likely to change any time soon. Fortunately, everyone, including you, the various governments (federal and state), and the schools themselves, are in on this secret. Everyone can plan well in advance of that eventual first day of school whether its kindergarten or graduate school and plot ways to get that child there and how to help you pay the bills when they come due. Consider this book to be your accomplice.

The world of education savings plans is forever changing (or so it seems, as legislative leaders cant seem to resist continuously tweaking the laws). This is another way of saying that it also can be complicated and confusing for everyone, including professionals, financial planners, tax folks, and your local bank or brokerage.

In this one-size-fits-all world, the powers that be have recognized that all people dont save money the same way. Some save more, some save less, some can live with risk, and others cant tolerate any risk. Clearly, no two are alike, but youre all present or potential savers. Numerous options exist that make saving possible and desirable for everyone.

Piling savings option upon savings option has created opportunities for most people. But all the new options have also muddied the waters because choosing between Plan A and Plan B can be downright difficult when they seem so similar. So, many people may choose to opt out, admitting confusion and doing nothing because its all so confusing, and no one wants to screw up a choice with so much riding on it.

And yet, it doesnt have to be that way. Im here to tell you that it is possible to understand the costs associated with education, both right now and in the future. It's also possible to find ways to pay for those costs in the most advantageous manner for you, both from a personal and tax perspective. And you cant focus on the personal and ignore the tax implications, nor can you do the reverse. Both are essential components, and the most successful savings program considers both elements.