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How do I save for a child's college education in the US?
Use the '2K rule' to save for your kid's college educationFidelity recommends you multiply your child's age by $2,000 to figure out how much you should save.A tax-advantaged 529 plan can boost your college savings.The average 529 plan investor has more than $32,600 in their account when their scholar reaches age 17.
What is a 529 plan?
A 529 plan is a tax-advantaged investment vehicle in the U.S. designed to encourage saving for the future higher education expenses of a designated beneficiary.
How does a 529 plan work?
A 529 college savings plan is a specialized savings account that is used to save money for college. ... The money in a 529 plan may be used to pay for the college expenses and K-12 tuition of the beneficiary, tax-free.
What are the main advantages of a 529 plan?
529 plans offer unsurpassed income tax breaks.Although contributions are not deductible, earnings in a 529 plan grow federal tax-free and will not be taxed when the money is taken out to pay for college.
What about disadvantages of a 529 plan?
Disadvantages of 529 PlansLimited Investment Options. ...The Fees May Be High. ...A 10% Penalty Applies to Non-Qualified Withdrawals. ...Time Isn't Always On Your Side.

Question: How long have they been around
Self-contained rewrite: How long have 529 plans been around?