Retirement & Financial Planning Report

The new plans (see item above) are more flexible than the old prepaid tuition plans. If the money is not needed for college, perhaps because the student has received a scholarship, penalty-free withdrawals are permitted. Another option, available to all families, is to roll over the account from one student to another student in the same family, tax- and penalty-free. The new 529 plans may be open to all investors (not just in-state residents) and the money can be used at virtually any accredited school in the U.S., for approved higher-education-related expenses. For information on old and new plans, visit (www.savingforcollege.com).