Series 50: The 529 Plan

The 529 Plan

The 529 plan is a tax-free savings plan that offers families professionally managed portfolios to help meet the rising costs of education. The 529 plan is named after Section 529 of the Internal Revenue Code and is legally known as a “qualified tuition plan.” What the plans qualify for is exemption from federal taxes on earnings and withdrawals if the plans are used for qualified education expenses. Qualified expenses, depending on the plan, include the cost of college tuition and sometimes room and board.

Section 529 plans are typically organized through a s