saving for college. Now, though, you really have no excuse. The pension bill President Bush signed into law this month made the tax benefits offered by 529 college savings plans permanent. Those provisions had been scheduled to expire in 2010. State-sponsored 529 savings plans allow parents and grandparents to save $250,000 or more toward a child’s college education. Though your contributions aren’t deductible from federal taxes, as long as the money pays for college expenses, your withdrawals are tax-free.
Office of Strategic Communication