A 529 plan is a tax-advantaged savings account designed specifically for education expenses. You contribute after-tax money, but the investments grow completely tax-free, and withdrawals are tax-free when used for qualified education costs like tuition, fees, books, and room and board. Most 529 plans are state-sponsored, and many states offer tax deductions or credits for contributions. You can use 529 funds for college, graduate school, K-12 private school tuition (up to $10,000 per year), trade school, apprenticeship programs, and even student loan repayment (up to $10,000 lifetime).

There's no annual contribution limit, though contributions count as gifts for tax purposes. One of the best features: you can change the beneficiary to another family member if the original beneficiary doesn't need the funds. Whether you're saving for your child's education or your own future learning, a 529 plan offers a tax-smart way to invest in education without the burden of student loans.