What is a 529 plan?

A 529 plan is a tax-advantaged savings account designed to be used for the beneficiary's education expenses. Use the money in your 529 for a wide range of college expenses at accredited schools nationwide in addition to tuition expenses for K-12, certain apprenticeship costs, and student loan repayments. 1

Should you invest in a 529 college savings plan?

For most parents looking for a way to save for their child’s college education, a 529 college savings plan is a wise choice. That’s because the money you invest in one of these accounts grows tax-free if you use the funds toward eligible education expenses. Individual states offer 529 plans.

Can a 529 plan help you pay for college?

While there are many options for financial aid available through scholarships and grants, families can give their college students a cushion by saving early and often for school. One option is a 529 plan, also known as a qualified tuition plan. This tax-advantaged savings plan is designed to help you pay for education. 1. Select a 529 Plan