What is a 529 college savings plan?

A 529 plan is a tax-advantaged account designed to save for education expenses. Contributions are made with after-tax dollars, but investments grow tax-free and qualified withdrawals (tuition, books, housing) are also tax-free. Many states offer a tax deduction for contributions to their in-state plan. In 2026, you can also roll unused 529 funds into a Roth IRA (with limits) if the beneficiary does not need them for education.