Today’s $$ ‘Word’: 529 Plan.
529 Plan: A college savings plan that allows your money to keep making money tax-free as long as you do one thing: use it to pay for college. You can use it for whatever college your little heart desires, but if you don’t, then taxes and penalties will come your way. What the heck does the number 529 have to do with college, anyway? About as much as 401 has to do with retirement; these plans are named for their numbers in Internal Revenue code. The IRS put it in the title because they definitely don’t want you to forget that they’re giving you some good tax-love with these accounts.