Fidelity poll shows increasing interest in 529 plans
A new poll by Fidelity Investments found that 54 percent of parents with children under the age of 11 are now more likely to use 529 college savings plans due to the recent change in the Pension Protection Act that makes permanent the federal income tax exemption for qualified withdrawals from a 529 plan.
Other findings included:
-- 36 percent of parents currently using a 529 plan were now more likely to increase their contributions.
-- 9 percent of respondents had already opened a 529 account as a direct result of the new tax permanency.
-- Less than one-quarter of parents saving for college are using 529 plans while 52 percent use bank savings accounts and 29 percent use U.S. savings bonds. Among those not using 529 plans, 21 percent said they had never heard of 529 plans.
For more information, click hereReturn to 529 News centerOther findings included:
-- 36 percent of parents currently using a 529 plan were now more likely to increase their contributions.
-- 9 percent of respondents had already opened a 529 account as a direct result of the new tax permanency.
-- Less than one-quarter of parents saving for college are using 529 plans while 52 percent use bank savings accounts and 29 percent use U.S. savings bonds. Among those not using 529 plans, 21 percent said they had never heard of 529 plans.