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Investments glossary

529 Savings Plan

A 529 savings plan is a tax-advantaged method of saving for future education expenses authorized by Section 529 of the Internal Revenue Code. Legally known as “qualified tuition plans,” 529 savings plans are sponsored by states, state agencies, or educational institutions, and may be used to cover a recipient’s tuition, room, board, books, computers, and other expenses. Plan holders can use the funds to pay for qualified college expenses, K to 12 tuition expenses, and apprenticeship program expenses. Plan holders can also use the funds to pay for up to $10,000 of student loan debt.

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