How much should I contribute to my sons 529 plan?

ANSWER

Expert Thomas Graham iii's Answer:

It would be wise to contribute as much as possible to your son's 529 plan.  These plans are great because they often allow for higher contributions than comparable IRAs.  Your contributions will grow tax free (state and federally).  Most 529 plans are also very flexible in terms of what you want your funds to be invested in.  All in all they are a great vehicle for growth and you can't beat the tax perks.  You would be very wise to contribute as much as possible to your son's 529 plan because the cost of tuition has increased greater than inflation in recent history.

Thomas Graham iii, CPA

Mississippi

2 yrs experience

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