L. Crandall-Hollick Analyst in Public Finance
the face of the rising cost of higher education, families may consider a
variety of ways to finance their children’s college expenses. In order to
make higher education more affordable, Congress has enacted legislation
that provides favorable tax treatment for college savings. Among the
options families may choose to save for college, they may consider using
tax-advantaged qualified tuition programs (QTPs), also known as 529 plans.
This report provides an overview of the mechanics of 529 plans and examines
the specific tax advantages of these plans. For an overview of all tax
benefits for higher education, see CRS Report R41967, Higher Education Tax Benefits:
Brief Overview and Budgetary Effects, by Margot L. Crandall-Hollick.
Date of Report: November 2, 2012
Number of Pages: 14 Order Number: R42807 Price: $29.95
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