Section 529 Plans Section 529 Plans
State-sponsored, tax advantaged plans that encourage individuals to invest in a pool of stocks and bonds for college savings. Contribution limits for Section 529 Plans vary from state to state. Generally, the asset allocation formula may be determined by a child's age—generally more aggressive for younger children and more conservative as children approach college age—or may be selected by the investor based on his or her risk tolerance. Distributions made to pay qualified education expenses are tax free.