5 Steps for Utilizing 529 College Savings Plan Funds
Published August 15, 2012
A U.S News and World Report article cited steps for parents
wanting to utilize their 529 College Savings Plan
in order to meet the rapidly increasing cost their children’s college tuition. A 529 plan is a way for parents to save and/or invest their money to aid their children with the cost of a higher education. The article quotes Jason Washo, a certified public accountant and personal financial specialist who says it is important for parents to estimate time needed to cash out their investments since most accounts contain mutual funds or short-term bonds. According to the article, other steps which can be taken are: reviewing the tuition payment due dates, considering potential delays, deciding where tuition checks need to be sent, and requesting distributions. For example considering potential delays consists of the holding time between someone cashing the check and the time the money is accessible whether it is for a payment or withdrawal.