Although 529 college savings plans have been around for many years and continue to gain in popularity, there are still many common misconceptions about them. In fact, on average, 4 out of every 5 families will create savings plans to help pay for their children's college education. And yet there's a lot of confusion as to the best way to save for this huge expense. These tax-advantaged college savings plans fuel some common misconceptions.
Experts can explain how 529 college savings and prepaid plans offer significant tax savings and financial aid benefits. However, many families are still unaware or confused about how these plans can actually work to their benefit.
Needless to say, these tax-advantaged college savings plans fuel some common misconceptions. So we'd like to set the record straight by demystifying some of these popular myths.
— By Jim Pavia, senior editor at large
Posted 21 November 2015