529 plans are state-sponsored investment plans designed to help families save for college. To find the best 529 plan for you and your family, look at the overall picture, not just at the tax benefits offered. Owing to the compounding nature of the investment return, the sooner you save, the more your money will grow.

529 plans are named after the section 529 of Internal Revenue Code 26 U.S.C. This is an investment plan that encourages saving for future higher education expenses. These are state-operated plans that provide a tax benefit. Your choice of school is not affected by the state your 529 plan is from.