Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- 529 COLLEGE SAVINGS PLAN
A savings plan sponsored by a state to assist with saving money to cover the cost of educational expenses. Earnings grow tax-deferred, but contributions are not tax-deductible. Withdrawals for non-qualified educational expenses are subject to income tax and a 10% IRS penalty. Distributions may be taxable.Back