How to Pass the Tuition Test

Changes in the tax laws make saving for education attractive, but complicated

What's the best way to save for college? This isn't a multiple-choice question." So says a new ad from Fidelity soliciting contributions to its Section 529 State Sponsored College Savings Plans. But the ad is wrong. You do have a number of choices. Though changes in U.S. tax laws that take effect this year make saving for education more attractive, they also make it more complicated. Choose from among these answers:

A. 529 SAVINGS PLAN. This plan allows you to put away as much as $268,000 per child, gradually or in a lump. The money grows tax deferred, and withdrawals...

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