Consumer knowledge of 529 plans’ rules and regulations is spotty at best. They rely on advisors to help them make good decisions. Advisors rely on college savings plan experts like the folks at College Savings Plan Network and Savingforcollege.com. To help everyone make better decisions, CSPN has a list of 21 pieces of must-have 529 information. Some of the most prevalent include:
Earnings from 529 plans are not taxed when used to pay for eligible college expenses.
There are no income limitation on a person’s ability to contribute to an account.
Parents don’t have to participate in their home state’s plan.
Minimum contributions can be as small as $15, and many states allow for huge maximum contribution limits (e.g., $300,000 or more).
The account funds can be used to pay qualified expenses at practically any accredited institution of higher learning. Cosmetology schools, PGA-affiliated schools, auto mechanic schools and health care institutions are just a few of the non-traditional colleges students can attend.
The plan contributions qualify for the $12,000 annual gift tax exclusion.
For more from the list and much more information, visit
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