A lot more Americans would put more money into Section 529 plans if they understood their benefits, according to a new survey by Alliance Capital.
The survey polled participants before and after an educational session on 529 plans. Before, just 9% of the sample group said they would use 529 plans. After the savings plans were explained to the same group, 51% said they would be more inclined to use them to save more for college. A greater majority said they would be more likely to save because of the new provisions for 529 plans under the Tax Act of 2001 (62%) and estate planning benefits (58%).