Which best defines a 529 plan?
A)An account that is designed to help finance future college expenses.
B)A time deposit account where the depositor agrees on a time period and sum of money.
C)An account that allows the holder to write checks against funds deposited in the account.
D)Funds set aside to be withdrawn after the age of 59.5 without penalty.

Question

Quizplus · Accepted Answer

A 529 plan is a college savings plan designed to help finance future college expenses. It offers tax advantages to the account holder and can be used for qualified higher education expenses such as tuition, room and board, and books. It is different from a time deposit account, checking account, or retirement account.

Which Best Defines a 529 Plan