College Savings Fund 529
July 29th, 2010
Question: College savings options besides a 529 Plan?
I know all about 529 plans, so please don’t suggest and please don’t try to change my mind. What are other options? Are there any ways to start a fund that wouldn’t be heavily taxed if the money wasn’t used towards education?
I would also like something that I could put a few dollars in here and there, without a big transaction fee.
Answer: A Roth IRA would work because you can withdraw off of the deposits only tax-free anytime. Anything earned must be left alone until age 59 1/2 without penalty, but anything you put in can be pulled out once you are in school, and the earnings over that time can stay in and keep earning FOR you.
The 529 College Savings Plan — A Guide for Parents and Policymakers
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Tags: 529, college, college savings fund 529, education, finance, investing