A 529 savings plan is a tax-advantaged investment account designed to help families save for education expenses. It’s typically sponsored by a state and allows you to invest money that can grow over time, free from federal taxes. As long as the money is used for qualified education costs—like college tuition, school fees, books, or even certain K–12 expenses—you won’t pay taxes on the growth or withdrawals. You can open a 529 plan for a child, yourself, or another beneficiary, and you can change the beneficiary later if needed. Investment options usually include age-based portfolios that adjust automatically as the student gets closer to college, as well as custom choices for more hands-on investors. While you don’t need to live in the plan’s sponsoring state to open one, some states offer extra tax benefits if you use their plan.