529 Plan

A 529 plan is a tax-advantaged savings account designed to help families save for education expenses. Named after the section of the IRS code, it allows you to contribute money that grows federal tax-free when used for qualified education costs like tuition, books, and room and board. Many states also offer tax benefits for contributions. There are two main types: college savings plans, which function like investment accounts, and prepaid plans, which lock in future tuition prices. The goal is to make funding education more affordable and manageable over time.