What is a 529 plan?
A 529 college savings plan is a tax-advantaged program created to help families like yours save for a child's future education expenses. The name "529" comes from the Internal Revenue Code section that specifies the plans' tax advantages.

Characteristics of 529 college savings plans

  • Most 529 plans are sponsored by a state; in fact, many offer a state tax incentive or other benefits to resident taxpayers who enroll in their plan.
  • You can generally enroll in any 529 plan regardless of where you live in the U.S. and regardless of where the student you're saving for - the "beneficiary"- lives.2
  • Regardless of the state whose plan you select, a student can attend any eligible school in the country (and some abroad, too).3
  • When the student is ready for school, the account owner can withdraw the assets, tax-free, for qualified higher education expenses: tuition, mandatory fees, books, supplies, and equipment required for enrollment or attendance, and certain room and board costs.4
  • Some 529 plans are available direct to the public ("direct-sold" plans); others are available only through financial advisors ("advisor-sold" plans).