Answer:
Explanation: A 529 Plan is an educational savings plan with tax advantage to the saver and it is also known as legally as a qualified tuition plan.
It is authorized by Section 529 of the Internal Revenue Code and sponsored by state agencies or educational institutions.
It is important to know that the interest generated under the 529 plan is not taxable by government.
Basically the 529 plan is for future educationally qualified expenses.
While a traditional saving account
is a normal savings account where one can save money in and also has the right to withdraw such funds whenever the funds are needed.
A traditional savings plan also generates interest but the interest generated are taxable. The interest generated on this account are usually moderate as the fund s are not held for a long time.
Generally, the 529 plan help you save more money than a traditional savings account because it is a tax free.
This is a saving plan specially made for the students especially for their education.
This plan is a savings investment with a tax-advantaged features that encourage people to save for the expenses to be needed in the future higher education meant for a designated beneficiary.
In conclusion, the 529 plan help you save more money than a traditional savings account because it is a tax free.
Read more about 529 plan
brainly.com/question/1508340
