Q: My son is a high school senior who will graduate in June. Is it too late to set up a Section 529 plan for him? N.R., Bordentown, N.J.
A: No. But while you won't face any restrictions, you also won't benefit much from the tax-deferred buildup in the plan, since you'll probably begin tapping into it by August. Distributions from a 529 plan are tax-free as long as they're used to pay for qualified expenses such as tuition, books and supplies. Note: You can also use a Section 529 plan to pay graduate school expenses, which may provide greater benefits in your situation.