What is a 529 plan?

A 529 plan is a tax-advantaged savings account designed to be used for the beneficiary's education expenses. Use the money in your 529 for a wide range of college expenses at accredited schools nationwide in addition to tuition expenses for K-12, certain apprenticeship costs, and student loan repayments. 1

Who runs a section 529 plan?

Section 529 plans are sponsored and run by the 50 states and the District of Columbia. The rules and fees of 529 plans differ from state to state. Although 529 plans take their name from Section 529 of the federal tax code, they are administered by the 50 states and the District of Columbia.

What can a 529 account cover?

Investors can use money from a 529 account for qualified higher education expenses, including tuition, room and board, books and supplies. The funds can also cover up to $10,000 annually per beneficiary for K-12 education expenses. Eligible institutions range from colleges and universities to vocational schools.