A 529 plan is a tax-advantaged savings plan in the United States designed to encourage saving for future education expenses.
These plans are typically sponsored by states and educational institutions and come in two main types: prepaid tuition plans and college savings plans.
Money saved in a 529 plan can be used to cover qualified education expenses, including tuition, fees, room, board, and books. Contributions to these plans may offer tax benefits, and earnings are usually tax-free when used for eligible educational expenses.
They are a popular tool for saving for college and other educational pursuits.