Reading, Write-Offs and 'Rithmetic
Saving for schooling now can be tax-free.
By Joan Szabo •
Opinions expressed by Entrepreneur contributors are their own.
Saving for college is getting more attractive from a taxstandpoint, thanks to the new tax law's changes in Section 529plans. Starting in 2002, distributions to students are exempt fromfederal tax as long as they're used for higher education.
Operated by states and managed by large brokerage houses, theplans came into use in 1997. Money accumulated can be used forqualified higher-education expenses such as tuition, fees, booksand equipment.
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