“New” College 529 savings plan, BAD idea!
Don’t get sucked into doing a College 529 savings plan. These plans are very
restrictive on how the money must be spent, and if you don’t use the money for
college you will pay the penalty.
Rather, consider the benefits of a non-qualified college savings plan that gives you
much more flexibility on how you can use the money that you saved. In fact,
there are no restrictions or guidelines on how the money can be spent and if your
child doesn’t go to college, there is no penalty.