ICYMI, here is my conversation with Richard Ellis of my529. Some key takeaways:
- When looking for the “best” 529, start by checking if your state offers a tax benefit for contributions to its plan. If not, look for a plan that offers low-cost, diversified portfolios and low plan fees.
- Research has shown that students whose families have any amount of college savings enroll and graduate at higher rates than those whose families have not saved. So if you can find a way to do it, your student will most likely be better off for your having done so.
- 529 accounts are very flexible and have many potential uses, although not all states have gone along with the recent changes allowing their use for K-12, apprenticeships and student loan repayment, and nonqualified withdrawals can be subject to both tax and clawback of any tax benefits you received for the contribution.
Tons more great info here:
