A 529 plan is
A)funds set aside to go toward post-secondary education expenses.
B)an account which allows the holder to write checks against deposited funds.
C)funds set aside to be withdrawn after age 59.5 without penalty.
D)a plan where taxes are not paid on the money or interest earned until the year it is withdrawn.

Question

Quizplus · Accepted Answer

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. The funds in a 529 plan can be used to pay for qualified education expenses, such as tuition, books, and room and board at eligible educational institutions.

A 529 Plan Is