Named after a section of the US federal tax code created in 1996, 529 college savings plans are designed to allow families and individuals to save for future college costs in a tax advantaged way.
Sponsored by individual states, 529 college savings plans allow individuals to designate a “beneficiary” that can use the money in the account to pay for eligible college expenses. Once money is placed in a 529 plan account, it is invested in stock mutual funds, bond funds, money market funds or other...