529 plans have become an important tax-advantaged savings vehicle for Americans preparing to finance a college education.
More than 13 million 529 accounts held an aggregate $319.1 billion as of year-end 2017, according to the College Savings Plans Network. The plans are poised to become more popular as a result of the new federal tax law, which allows 529s to cover up to $10,000 of annual K-12 tuition in addition to college tuition.
There are about 100 529 plans, all with different investments, glide paths and state rules governing them. Here are some of the main things financial advisers should consider when helping clients choose a plan.