What is a 529 plan?
A 529 plan is a tax-advantaged investment plan typically sponsored by a state and designed to help families save for a beneficiary’s (typically one’s child or grandchild) future education. The savings in a 529 plan grow free from federal income tax. When withdrawals are used for qualified expenses, they are also tax-free.
There are two types of 529 plans: prepaid plans like GET – the Guaranteed Education Tuition program and saving plans, like the DreamAhead College Investment Plan. The money in the account can be used to pay for qualified expenses for a beneficiary.
Learn more on our What are 529 plans? page