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A 529 Plan Is the Most Tax-Efficient Way to Save for Education Costs

Source: Money Crashers · Oct 17, 2026 23:00 UTC

Historic two-story brick public school building in Guttenberg, Iowa — File photo Carol M. Highsmith / Library of Congress · Public domain · Source

The Quick Take

Money in a 529 plan grows untaxed and comes out tax-free for school costs, and many states also give you a tax break for putting it in. Before you open one, check whether your state's break requires its own plan, then set up an automatic monthly contribution. Source

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