College costs are spiraling to the point where a four-year major college education is approaching or exceeding the cost of your house. Like many Americans, you may not be able to foot the entire cost of a college education, but a prudent savings plan can reduce the amount of aid your child will have to seek – and ultimately, how much debt they will graduate with.
What are the best methods for saving for college? Here are a few:
- 529 Plans – 529 plans, named after Section 529 of the tax code, are investment accounts that are operated by states that allow anyone to contribute to funds for your child’s education, building up funds tax-free as long as they are used for that purpose. They are great for allowing kids to contribute early to their own education funds.
The 2017 Tax Cuts and Jobs Act (TCJA) expanded the us…