For example, it makes sense to pay for the first $4000 of college costs each year because the first $2000 can be deducted from taxable income. The first 25% of the second $2000 spent on qualified education expenses can also be deducted.
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Many pitfalls exist that can making using a 529 plan less effective for funding college tuition. So reports WealthManagement.com.
For example, it makes sense to pay for the first $4000 of college costs each year because the first $2000 can be deducted from taxable income. The first 25% of the second $2000 spent on qualified education expenses can also be deducted.