just like an Roth IRA, you can take out your contributions(what you put
in) at any time. You will be charged a 10% penalty and be subject to
ordinary income tax on the earnings portion of the 529 account value.
SO say you put in 5,000 this year and in two years the account value is
worth 6,000. That 5,000 you put in, you can take that out with no
problem. The amount you take above 5,000 is subect to the 10% penalty
and ordinary income tax. So lets say you withdraw the whole 6,000 and
you're in the 28% tax bracket. $1000 x .38 = $380. $1000-$380=$620.
Your total withdrawal is $5620. The thing is you wont be charged on
this when you take it out. You will just have to report on your tax
form.

As I understand it, yes. The account owner (I assume that is you) can
withdraw 529 funds at anytime. If it is used for non qualified purpose,
You will pay a 10% penalty plus taxes on any gains. If you read the 529
plan for NY they do explain this in detail. Note that there are
exceptions. For example, death of the beneficiary, scholarships to name
a few. The rules Change in 2010 however. Read the plan details. If you
think that you will have a high probability of needing the money in
three years, the benefits of a 529 won't be worth it.

The q. I was asking is taht my son is only 1 yr old. If I decide to
withdraw money after say 3 yrs, can I do that?

Ifyou do not use the money for qualified higher education expenses, any
increase in the value of your initial purchase amounts (the difference
between your contribution amount and the amount refunded) will be
subject to federal income tax as well as an additional 10% tax.

I know this may seem silly. I am planning to put money aside for my
son's college (I used 529 plan). My question is that If I invest in 529
(NY) can I withdraw money anytime I want or I can't do anything with
it?

Appreciate any responses.