S AV I N G F O R
H
ow students, parents and grandparents can meet the rising costs of higher education while minimizing taxes
BY EVERETT A. CHASEN
In 2021, my wife and I became grandparents. Like all grandparents, we have many hopes and dreams for our grandson. While he will shape that future on his own, there’s one wish we can do something about ourselves: We want him to be able to attend the best college that accepts him without being crushed by a lifetime of debt. To help accomplish this goal, we opened a Section 529 savings plan account with our grandson as the beneficiary. The US Securities and Exchange Commission (SEC) defines a 529 plan as “a tax-advantaged savings plan designed to encourage saving for future education costs.” Such plans are sponsored by states, state agencies or educational institutions, and are authorized by Section 529 of the Internal Revenue Code.
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