A 529 Plan is a tax-advantaged savings plan designed to help families save for future education expenses. It is named after Section 529 of the Internal Revenue Code and can be used for qualified expenses at colleges, universities, and other eligible educational institutions. Contributions to a 529 Plan grow tax-free, and withdrawals for qualified education costs are also tax-free. There are two main types of 529 Plans: prepaid tuition plans and education savings plans. Prepaid tuition plans allow families to pay for future tuition at today's rates, while education savings plans let families invest in a variety of investment options to grow their savings over time.