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A new way to save and pay for college

(CBS, KYMA/KECY) - One number you need to know for May 29 is 529 as 529's are a state-run college savings plan.

The money grows with no tax on earnings and when you pull it out for educational use, there's no tax due.

Besides college, the savings plan can also be used for private high school and elementary education in certain states.

"Cool thing is, you can own it as the parent, but grandparents can put money in. And we can have money that is moved between siblings," said Jill Schlessinger, CBS News Business Analyst.

If you're fortunate enough to have leftover money in that 529, you can move a max of $35,000 in installments as well as into a Roth IRA for your child as long as their 529 account has been open for at least 15 years.

Article Topic Follows: Education

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