The ABC's of 529 College Savings Plans Named after Section 529 of the Internal Revenue Code, 529 plans are tax-advantaged savings plans designed to encourage saving for future education costs. Managed by states or educational institutions, these plans can be categorized into two types: prepaid tuition plans and education savings plans. Both options offer unique benefits that can be tailored to fit various educational paths and family budgets.   Prepaid Tuition Plans Prepaid tuition plans allow families to purchase credits at participating colleges and universities for future tuition and mandatory fees at current prices. This option can be particularly beneficial when considering the inflation rate of college tuition fees.   Education Savings Plans On the other hand, education savings plans are investment accounts that can be used for a beneficiary's qualified education expenses, including tuition, room and board, and other related costs. The growth of these accounts is ...