A survey by Hartford Financial Services Group Inc. finds 84% of parents and grandparents are more likely to contribute to a 529 plan now than they were at this time last year.
The survey also found that 80% percent of parents and grandparents have started saving for college for their children and grandchildren, and 60% are putting funds for higher education into a 529 college savings plan.
Survey participants cited tax benefits among the main reasons they chose a 529 plan to help them save for their children’s college education.
Specifically, 68% cited the fact that withdrawals for qualified education expenses are exempt from federal taxes, and 43% cited state income tax deductions for those contributing to an in-state plan.
The survey was conducted online in October among more than 500 parents and grandparents working with a financial advisor.
The Hartford administers SMART529, a college savings plan offered by West Virginia.