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What are 529 plans?

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College is one of the biggest expenses people face in their lifetime. 529 plans were created to help parents, future students, friends, and family save money tax-free for eligible expenses, like tuition, fees, room & board, books, and supplies. 

There are two kinds of 529 plans, Savings and Prepaid. Families can choose to save in one type of plan or the other, or both to diversify their college savings:

Each state can sponsor their own plan(s) and offer specific benefits, like tax breaks, low contribution limits, generous plan contributions, grants, scholarship opportunities, and more.