Saving for college? A 529 plan is a great way to do so. A 529 plan is a ‘tax-advantaged’ plan, with the most common type being a savings plan. This plan allows your money to grow tax-free, as long as you use the money for qualified education expenses. The other type of 529 plan is a pre-paid tuition plan, which allows you to pay for the cost of a specific college now to lock-in current rates, if you think the cost of college will go up. In general, the 529 savings plan is much more flexible, since you can use the money to pay for education expenses at many different educational institutions.
