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Tax Law to Prompt Further 529 Investments, Poll Finds

A poll commissioned by Fidelity Investments shows that now that the law has been permanently extended to allow parents to make tax free withdrawals from 529s, more than half of parents said they are likely to open a 529 plan. Currently, only 25% of parents use 529 plans. A majority, 52%, use bank savings accounts, and 29% use U.S. savings bonds. Among those who already have a 529 account, more than one third plan to increase their contributions.

The poll, conducted by Synovate Research, was among 1,032 parents with children age 10 or younger.

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