College savings plans, also known as 529 plans, have been around for years, letting you set money aside on a tax-deferred basis toward college costs. As long as you use the money for qualified educational expenses linked to college, you don’t have to pay on the account’s gains. Tax reform made it possible to spend 529 plan money tax-free on elementary and secondary school costs as well, so those who pay tuition fora child’s K-12 schooling should take another look at how the plans might help them save on their taxes.
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