529 Plans & ABLE Accounts
Municipal fund securities (regulated by the MSRB): 529 college savings plans grow tax-deferred with tax-free withdrawals for qualified education expenses; ABLE accounts do the same for disability-related expenses.
529s are sold by official statement (not prospectus) because they are municipal fund securities; many states add their own tax deductions for residents. Prepaid tuition plans lock today’s tuition rates, while savings plans invest in portfolios that typically glide more conservative as college nears.