529 College Accounts part 1

I know that I wrote that for my half day of Friday (21 Mar.) I would stop by Huntington Bank and TD Ameritrade and handle my bank account and IRA set up, but I did not.  I spent some quality time with my Fiancé.  It was worth it.   I will have to handle those other financial tasks another day.  I will report on my findings hopefully later this week.

My employer has automatic deductions available through ADP for making contributions to a 529 College Savings account.  I just received all of the information regarding the program.  I am reading through all of it trying to make sure I know what setting up a 529 account entails.  I have read some controversial posts on other money blogs about this type of accounts.  Well, I can’t say that there is controversy around the 529 accounts but there is in regards to the servicer of the account.   Apparently they can put so many fees on the account that it is not worth setting up the account.  Basically the major benefit of the 529 account is that you don’t pay tax on the amount that the account grows.  Unlike a high interest savings account where you own taxes on that 3% interest that your account grew as it is “income”.  As with anything this account will not be easy to set up. It will take some time investigating.  I will update you of what I uncover.