The 529 Plan

A 529 plan is a tax-free savings plan to help families meet future education expenses. It is named after section 529 of the Internal Revenue Code and is legally known as a “qualified tuition plan.” What it qualifies 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 such costs as college tuition, room and board, and related expen