What are the income restrictions here?
None. These plans are open to everyone, regardless of income. Even Melinda and Bill Gates qualify. Q: Can I use the money to pay for secondary school? A: No. These plans are for higher-education costs only. That can be a big drawback for young parents facing a tuition bill of $20,000 or more for a highly coveted place in a New York City private-school kindergarten class. Q: How soon should I get started with one of these plans? A: The sooner, the better. My friend Liz, Gabrielle’s mother, tells me she already has opened one since the first time we spoke. “How could you not” do it, she asks, rhetorically. * * * The New Year Will Usher In Some Changes to Tax Rules (Dec. 30) Q: Any other major changes in the new law? A: Yes. For example, it changes the calculation of the amount considered “reasonable” for room and board expenses. Here’s some background: For 2001, “qualified” higher education expenses included “reasonable costs of room and board for a beneficiary who is at least a half-tim
