Latest / The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs
How 35 Million Families Use 529 Plans Wrong
Episode 1 of The College Savings Podcast with Fexingo. Lucas and Luna dig into the single most costly mistake families make with 529 plans: overfunding. They unpack data from the College Savings Foundation showing the average 529 account holds just $27,000 — far short of covering four years at a public university, which now averages $110,000 with room and board. But the real issue isn't underfunding; it's the fear of overfunding. Lucas explains the penalty on non-qualified withdrawals — earnings taxed at the owner's rate plus 10 percent — and why that scares people into saving…
The skinny
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