Tough Lessons For College And Retirement Savers

by Rachel Baker on September 10, 2013 has published an article about ten tough lessons that could save heartache for college and retirement investors.

Before you put your money in a special tax favored account for college or retirement, make sure your tax savings won’t be stolen away by excess fees—and be ready to walk away from a tax break if they will. Those are two of the tough lessons to be drawn from a new study of 529 state college savings plans by Cornell University economist Vicki Bogan. The money in these accounts—now more than $180 billion– grows tax free provided withdrawals are for higher education. While there’s no federal deduction for contributing to a 529 account, 34 states and the District of Columbia offer residents a deduction or credit for their contributions to the state’s plan.

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