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Does anyone know about 529 accounts?

my SO's cousin opened a 529 account for our son but i don't understand it at all. she put in 250 dollars but when i checked it online it said it was like 202 and some change. does it fluctuate with the stock market or gain value like bonds? i feel like an idiot because i can't figure out a simple savings account

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r_elizabeth2290

Asked by r_elizabeth2290 at 2:13 PM on May. 20, 2009 in Money & Work

Level 6 (143 Credits)
Answers (1)
  • It's not really a savings account but an investment account. If the money in the account is withdrawn for college and its expenses (books, room and board, etc.), then the money won't be taxed federally and possibly at the state level either. Here's an explanation of them: http://www.collegesavings.org/whatIs529.aspx
    evwsquared

    Answer by evwsquared at 5:05 PM on May. 20, 2009

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