, Columnist
Coronavirus Shakes Colleges But 529 Plans Stand Firm
Tax-advantaged savings vehicles remain a smart choice for most parents, even as higher education is being transformed.
There always are bills to pay.
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Colleges face an uncertain future as the coronavirus disrupts U.S. higher education. How should parents, especially those with younger children, set money aside for college costs when things are so unpredictable?
The go-to college savings vehicle for wealthier families has long been the tax-advantaged 529 plan offered by many states. Contributions made to 529 accounts are eligible for deductions or credits against state income taxes. Earnings in the accounts grow tax-free and withdrawals don't trigger taxes as long as they're used for certain educational expenses.