529s are a valuable savings tool for all American families, from two-income households of teachers and firefighters, to families putting aside $25 a month for a first-generation college student – Richard Polimeni, Chair of the College Savings Foundation
Washington, DC (PRWEB)
February 28, 2017
529 college savings plans stand out as popular and effective planning and saving tools that both encourage and enable American families across income levels to prepare for the costs of higher education. New research released by Strategic Insight, an independent financial research and data analysis organization, shows that a large majority of 529 users – 75% — have household incomes of $150,000 or less. Most participants represent solidly middle-income families – and lower-income households also recognize the benefits and need for targeted college saving, with a full 17% of 529 families having household income of $50,000 or less.
“529s are a valuable savings tool for all American families, from two-income households of teachers and firefighters, to families putting aside $25 a month for a first-generation college student,” said Richard Polimeni, Chair of the College Savings Foundation.
“These new numbers show strength in 529 ownership in every income bracket from $25,000 to $150,000,” said Paul Curley, Director of College Savings Research at Strategic Insight. A recent national survey by SI indicated that 32% of 529 users have household incomes of less than $75,000, 49% have incomes below $100,000, and as stated before, 75% have incomes below $150,000.
Not only are 529 plans embraced by families as affordable options, but they also are an efficient tax-advantaged vehicle for families. According to a recent report from The Pew Charitable Trusts, federal tax…