Education Investment Strategies

Where the “Smart Money” Invests for Education

There are a number of tax-benefited ways to fund a college education, each with its own set of rules. In addition, many non-investment tax strategies help with the cost of higher education. These other strategies are discussed in Chapter 20 and Chapter 30. This chapter focuses on the methods for reducing the taxes on investments set aside for education expenses, including the following:

  • 529 plans and Qualified Tuition Programs
  • Coverdell Educational Savings Accounts
  • Education Savings Bonds
  • IRAs and Roth IRAs
  • Gifting appreciated items

529 Plans and Qualified Tuition Programs

529 plans and Qualified Tuition Programs (QTPs) are programs run by a state or by ...

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