The Short Answer

6 Fast Facts About 529s

Karen Wallace, CFP®

While there are many different options available to help save for a college education, 529 plans continue to be one of the most popular savings vehicles

Here's how they work: They are funded with aftertax dollars, which then grow tax-free. Withdrawals for qualified education expenses are also tax-free. On top of that, some states offer tax deductions or credits for contributions.