September marks College Savings Month. As students head back to school and some off to college, we are reminded that college costs continue to increase.
Many investment options are available to help fund higher education, including 529 college savings plans. This option could help prevent your child from accruing debt and has certain tax advantages. With any 529 savings plan, the money accumulates free from federal income tax, and withdrawals for qualified educational expenses are also not subject to federal income tax.
It is important to discuss your financial situation with a tax expert to help you understand the implications.