By Lynne Adkins

by Lynne Adkins

PHILADELPHIA (CBS) — Saving for college can be tricky if you don’t follow the rules.

A 5-29 savings plan pays for those college essentials such as tuition, housing, books, and university required equipment. Glenn Meyer, President of GDM Advisory Group in Jenkintown says it will cost you if you use the money the wrong way.

“You are subject to both taxes and penalties. Those would both be applied to only the earnings component of what you’ve contributed. Basically speaking, any monies that don’t represent your actual contributions to the plan would be subject to both incomes taxes and penalties.”

Once you start taking out the cash, keep receipts in case you have to justify any expenses.