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This publication provides an overview of 529 plans and comparison of the two types of these plans: prepaid tuition and college savings. You will gain some insight as to the advantages and disadvantages associated with the plans, the investment choices and options, the tax implications, and the questions to ask before investing in a 529 plan.,Because a college education may not be a good fit for some children with special needs, the Able Act allows parents to save money in a tax-free account as long as the funds are used for certain types of expenses (qualified expenses).,If your child goes into the military, the funds in the 529 plan could remain while he or she serves and then applied to educational expenses after the military service has ended or perhaps during service if he or she is able to attend school during this time.,Parents should start saving as early as possible to get the maximum benefit from their 529 college savings plan. That means enrolling in a 529 plan when their first child is born, or even sooner.,529 Plan Overview . A 529 plan is an education savings plan sponsored by a state or state agency. Savings can be used for tuition, books, and other education-related expenses at most accredited two- and four-year colleges and universities, U.S. vocational-technical schools, and eligible foreign institutions.,Q. What is a 529 plan? A. A plan operated by a state or educational institution, with tax advantages and potentially other incentives to make it easier to save for college and other post-secondary training, or for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school for a designated beneficiary, such as a child or grandchild.,How much should you have in a 529 plan to save for college for your children by age, including high and low contributions for school.,A 529 account can be used for other types of education besides college, including trade and vocational schools. As the 529 account owner, you always have the right to change beneficiaries to another family member or even yourself. However, if you decide to use the money for something other than ,That depends on how and where you've stashed the money. Luckily, today there are several flexible ways to save for future tuition costs, including opening a 529 college savings plan. A 529 college savings plan is a very simple way to save money for your kids' (or anyone else's) college education. The benefits are tremendous.,A 529 plan is a college savings plan that offers tax and financial aid benefits. 529 plans may also be used to save and invest for K-12 tuition in addition to college costs. There are two types of 529 plans: college savings plans and prepaid tuition plans. Almost every state has at least one 529 plan.