RI.gov: Don’t Wait for New Year to Start 529 College Savings Plan

According to the College Savings Plans Network (CSPN) – a non-profit association representing 529 college savings programs – 49 states and D.C. offer some type of 529 program. Whether it is a traditional 529 Savings Plan (which allows investors to select market-based financial products similar to mutual funds), or a 529 Prepaid Tuition Plan (which allows individuals to prepay future college tuition based on current tuition rates); contributions to 529 plans in states with state income tax deductions and credits enable investors to deduct some, if not all of their contributions from their state income taxes. But to take advantage of the deduction in 2007, typically contributions need to be made prior to the end of the year. In 2006, more than eight billion dollars were contributed to 529 plans in the last three months of the year. More...