A 529 college savings plan
- Name: Emily and Matt Perryman
- City: Buffalo, N.Y.
Emily and Matt Perryman just had their infant son less than five months ago, but they've already stashed a good portion of their tax refund in a 529 college savings plan for him.
Since their son was born in December they were able to claim him as a dependent for the 2013 tax year, which boosted their tax refund by a few thousand dollars more than they expected.
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They put some of the money in their general savings account, but used the rest to open a 529 college savings plan, a savings account that allows them to withdraw their money tax-free, as long as the proceeds are used towards approved college costs.
"I have this little person who is counting on me, and I can't just think about the now," she said. "I thought it was a really nice way to use that money that we didn't expect to have."
