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Study finds many parents are not using 529 college saving plans

The 529 lets people invest college savings without taxing the gains on that investment.

With the high cost of tuition, a lot of families start thinking early about how to save enough money for their children’s college education. One option for people who have the means to do that is a college savings plan known as a 529. It lets people invest college savings without taxing the gains on that investment. But a report from the research firm Morningstar says only about 16 percent of families who are saving for college use the 529 plans, sponsored by states. But why might that be?

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