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...invest money without having Uncle Sam reach in each year and tax your earnings. Thanks to the magic of compounding, a yearly investment of $3,000 that grows, say, 7% annually, to $38,632 after 10 years, could grow tax free to $44,351, according to Robert Matricardi at T. Rowe Price. (You also don't get taxed when you spend the money, though that little bonus will run out at the end of 2010 unless Congress extends...

Author: /time Magazine | Title: Money: Do 529s Pay? | 1/22/2006 | See Source »

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