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529 Plan Web Directory Launched
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.
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