What is a 529 account?

[xavier]

What is a 529 account, and how does it help with education savings?
Are 529 accounts only for college expenses, or can they be used earlier?
How do tax benefits work with a 529 account?

 

[Sam]

A 529 account is basically a tax-advantaged savings plan designed for education costs. You invest money, it grows, and as long as you use it for qualified education expenses, the withdrawals are tax-free. It’s commonly used for college, but many plans now allow K–12 tuition as well.

 

[Daxton]

A 529 account is a tax-advantaged savings plan designed to help families save for education expenses. Funds grow tax-free and can be used for tuition, books, room, board, and some K–12 or student loan costs.

 

[LiamOliver]

The 529 plan is a tax-saving savings program that has been created to assist in financial coverage of qualified education costs such as tuition and textbooks.