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529 college savings plans: a smart investment option.

Will you be writing a hefty check for college tuition this fall? Or do you see that day looming in your future? If so, you should take advantage of a perennially under-utilized investment option by contributing to a 529 college savings plan and deduct a chunk of the expense, says Kevin Brosious of Wealth Management Inc., Pennsylvania. In Pennsylvania, for example, parents who claim the maximum $13,00 contribution can cut nearly $800 from their tax bill. (For savings in other states, go to collegesavings.org.)

Added bonus? You save again when you pull funds out of the account--529 withdrawals are exempt from federal and state taxes.

ES. Using credit cards from Fidelity, Upromise, and other companies that roll reward points into a 529 plan can boost your cash contributions.

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Title Annotation:LIVING WELL
Publication:Saturday Evening Post
Article Type:Brief article
Geographic Code:1U2PA
Date:Sep 1, 2011
Words:130
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