What you need to know about 529s

There’s no denying that a college education can come with a hefty price tag. During the 2022-23 school year, costs for undergraduate tuition, room, and board were about $27,100 at public schools, $33,600 at private, for-profit universities, and $58,600 at private nonprofit institutions, according to the National Center for Education Statistics.

One of the safest options for setting aside money to pay for higher education (or post-secondary training) is the 529 plan, a college savings plan created by Congress in 1996, legally known as a “qualified tuition plan.” Its name derives from the Section 529 of the Internal Revenue Code, since every state sponsors at least one type of plan.

There are numerous advantages to using a 529. Here’s an overview of the top four benefits.