529 Plan Web Directory Launched

January 22, 2003 (PLANSPONSOR.com) - A new website has been launched to provide information about 529 college savings plans.

The Web site  includes a variety of investment and other information about the 529 plans, which allow family members to save for a child’s college expenses.   The site ( www.529directory.com ) includes such item as:

  • eligibility information,
  • fees,
  • withdrawal rules, and
  • time and age limitations on using the accumulated assets.

The directory listings also include Web links to plan’s main site as well as the plan manager’s site.

As with a 401(k) plan, income generated in a 529 plan grows tax-deferred at the federal level.  Qualified withdrawals from a 529 plan are then free of federal income taxes, whereas premature withdrawals of earnings for other purposes incur income taxes and a 10% penalty. Many states have also endowed their 529 plans with tax-free qualified withdrawals at the state income tax level.