LivingSocial is currently offering a $50 Gradsave gift card for $24 (expired). The GradSave College Savings Gift Card can be redeemed for a $50 deposit into any national 529 college savings plan. So if you’re already meaning to contribute some money towards a 529 plan, it’s basically $26 in free money. I bought one and requested it to be transferred it to my daughter’s existing Ohio CollegeAdvantage 529 plan. Limit 1 voucher per customer, beneficiary, account, savings plan, or 529 plan.
Additionally, GradSave.com is currently waiving all credit card processing fees on their gift cards as another start-up promotion. So, if you wanted to contribute say $1,000 towards your 529 plan, now you could earn cashback, points, or miles on your credit card for that amount (with no fees) instead of via check or bank account transfer. Also potentially handy towards spending hurdles on $500+ credit card bonuses.
A day later, credit card fees are no longer waived. The fees are rather high as well, even for bank transfers.
529 contributions can be taken out without penalty. If you withdraw any earnings for unqualified expenses, then you will be subject to income taxes as well as a 10% penalty. Still, it may be a lot of paperwork and/or headache unless you keep your records very clean and simple.