What is a 529 college savings plan?

A 529 college savings plan offers unique tax advantages for people investing money for college. By law, all 529 college savings plans must be state sponsored, but you don’t have to be a resident of a particular state to invest in that state’s plan (but there may be income tax advantages available only to state residents for a particular plan).

There’s no income limit to participate in a 529 college savings plan, and you can open one on behalf of any beneficiary — even yourself.