As I previously discussed, the college savings plan industry was gearing up for May 29th, National 529 Day. Many states had huge promotions to educate people about 529 plans. However, not everyone is buying into the 529s. Some folks are settingaside cash for their kids education without utilizing a 529. Those people areapprehensive about tying their money up in an account with penalties andrestrictions. While there are some tax deduction advantages to a 529, thereare also withdraw restrictions and slow returns that could make a 529 lessattractive. For those interested in potential alternatives, you might consider opening taxableaccounts which open the door to investment options, using an IRA for a dual purpose, or purchasing municipal bonds.
See Kayrn McCormack, 529 Rebels: Alternative Ways To Save For College, Reuters, May 28, 2013.
