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    e tax-deferred money to a savings account earmarked for college. The money gains tax
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    There are two basic types of tax-free college savings plans, the Coverdell educational savings account and the 529 savings account. Each has advantages and disadvantages depending on the situation of the individual family.

    529 college savings plans allow parents, and in some cases grandparents and other family members, to contribute tax-deferred money to a savings account earmarked for college. The money gains tax-

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    al savings account and the 529 savings account. Each has advantages and disadvantages depending on the situation of the individual family.

    529 college savings plans allow parents, and in some cases grandparents and other family members, to contribute tax-deferred money to a savings account earmarked for college. The money gains tax

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    depending on the situation of the individual family.

    529 college savings plans allow parents, and in some cases grandparents and other family members, to contribute tax-deferred money to a savings account earmarked for college. The money gains tax

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    allow parents, and in some cases grandparents and other family members, to contribute tax-deferred money to a savings account earmarked for college. The money gains tax
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    e tax-deferred money to a savings account earmarked for college. The money gains tax-free interest and there is no tax assessed on the principle if it is withdrawn to cover eligible college expenses. The current tax rules will be in effect until 2010, but even if Congress does not reauthorize that section of the tax code, tax will still only be applied to the earnings on the account, not the principle.

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