Established in 1996, 529 plans were designed to encourage tax efficient saving for future college expenses. The Tax Cut and Jobs Act of 2017 expanded how these plans can be used and now allows them to cover up to $10,000 per year, per child for primary and secondary education at private institutions.
The cost of education is rapidly increasing. With student loan debt now being the second highest consumer debt category, trailing mortgage debt, the stakes of college planning are high and there is not much room for error. Here are some common mistakes that parents make when planning for their children’s college education.