A 529 plan is a tax-advantaged savings account designed to help families save for future education expenses. It allows individuals to invest money that can grow over time, and withdrawals for qualified education costs, such as tuition and books, are tax-free. There are two main types of 529 plans: prepaid tuition plans and education savings plans. Prepaid plans let you pay for future tuition at today’s rates, while education savings plans allow you to invest in a variety of investment options. Both types can be used for eligible expenses at colleges, universities, and other educational institutions.