Calls For College Savings Plans

By: Associated Press
By: Associated Press

WASHINGTON -- The Obama Administration wants states to make changes to college savings plans that it hopes will expand their use by middle class families.
Treasury Secretary Timothy Geithner says the Section 529 savings plans can help Americans to save for college because of the tax savings they offer.
But a new Treasury report found that only 5 percent of middle-income families had the college savings plans, compared with one-third of high-income families.
To expand the number of families using the plans, Geithner says states should expand the types of investment funds that can be used, pursue policies that would eliminate certain home-state biases and work to reduce investment fees.

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  • by Anonymous on Sep 9, 2009 at 11:34 AM
    People have these savings plans but they are not called 529's. The way the 529 is set up it is difficult to use it for your children or grand children if you have to designate one name on it.
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