Does anyone have an idea how these plans work? Can they be used for other things then education (like if your child decides to start a business rather than go to college)? Are they like mutual funds - can you pick and choose your investments?
Is anyone using one and how do they feel about it?
They are good for a few reasons, but it depends on your state and the plan they offer.
I like the fact that the money is set aside for the specific purpose, and incurs no penalties if withdrawn for that purpose. Also, several people can contribute to one beneficiary. This is a good vehicle for grandparents who wish to gift money to a college student for tuition, or for separated parents to agree to contribute money specifically for education in an interest bearing account.
Debbie,
I found a directory of great articles addressing college savings and 529 plans. The website is http://www.529saver.com. After some research, it doesn't seem as confusing to me anymore, so far anyway.
Hope this helps. Good luck!
Dawn
Sign up with upromise.com for free money deposited into your 529 account. They link it to your shopping discount cards and debit cards and place a percentage of what you spend into your account for free.
529 Plans
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