Changes to College Savings Plan: 529-S
It looks like the rules governing the 529 College Savings Plans could be changing.House lawmakers passed legislation last week that changes two provisions to the plans. First, families will be allowed to use 529 money to buy a computer, provided it's used for schooling. Second, plan holders can re-contribute money tax-free to the plan, if the money is refunded from the school. The bill comes after the White House decided not to go forward on a proposal to restrict the tax benefits of the 529-S.