Alternative Energy Stocks
by Tom Konrad Ph.D., CFA
The most popular way we have to save for our children’s future education is destroying their future.
A 529 savings plan is a tax-advantaged savings plan designed to help pay for education. There are also prepaid tuition plans set up under the section 529 tax rules, but this article is focused on 529 savings plans, and will be what I mean by “529 plans” for the rest of the article.
The money in 529 plans can be used for college as well as K-12 education, apprenticeship programs, and paying off some student debt. Savings plans grow tax-deferred, and withdrawals are tax-free if they’re used for qualified education expenses. Each state (and DC) has its own 529 plan, but you don’t have to live in a state to participate. Many states offer additional tax benefits to local residents.