529 Plans
A 529 plan is a tax-advantaged savings plan designed to encourage saving for certain educational costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.
Concept at a glance
Definition and explanation
A 529 plan is a tax-advantaged savings plan designed to encourage saving for certain educational costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. [1]
There are two types of 529 plans: prepaid tuition plans and education savings plans . All 50 states and the District of Columbia sponsor at least one type of 529 plan. In addition, a group of private colleges and universities sponsor a prepaid tuition plan. [1]
Source-supported connections
Frequently asked questions
What does 529 Plans mean in the cited reference?
A 529 plan is a tax-advantaged savings plan designed to encourage saving for certain educational costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. [1]
529 Plans connection map
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Sources and review dates
Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.