As you work to save up enough money to send your child to college, one of the tools at your disposal is the 529 plan.
This plan allows you to put money to work on behalf of your child. With a 529, money grows tax-free — as long as it is used for qualified education expenses.
But could the 529 be a little too effective? What happens if the account grows just enough that assets affect eligibility for financial aid? Depending on the situation, the 529 might be good enough to help out, but not quite enough to completely cover the costs. But if there is too much in the account, you could lose some of your ability for the financial aid you need.
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