Tricia Scarlata on Saving For College Tuition

Summary

Tricia Scarlata, Head of Education Savings at JPMorgan, discusses the high cost of college, the importance of starting 529 savings early, and the misconceptions about 529 plan restrictions. She contrasts 529 plans with Trump accounts, noting 529's better tax benefits for education, and emphasizes the new Roth IRA rollover option that alleviates overfunding fears.

• Average private college cost is around $65,000 per year, with elite schools approaching $100,000.
• Only about 40% of families pay full tuition; many schools offer no discounts due to high demand.
• 529 plans are flexible, covering vocational programs, equipment, and certain Roth IRA rollovers.
• Trump accounts are better suited for wealth building and early retirement rather than education savings.
• Student loan debt burdens graduates, delaying financial milestones like moving out or saving for retirement.
• The biggest question from investors is about Roth IRA rollovers, easing fears of overfunding a 529 plan.