Americans Have More Than $460 Billion in College Savings Plans. It’s Not Enough

Americans amassed $464 billion in tax-advantaged college savings investment plans as of June, up $91 billion from a year ago, according to new data from the Federal Reserve.

Spread among the estimated 15 million families with so-called 529 accounts, that means that the average plan holds less than $29,000, which would pay for about half of a year of tuition at the average private university or a year or more at a public university.

529 plans allow people to invest money and then withdraw it to pay for college and some other educational expenses without paying federal income taxes on the ...