Wich of the following is true of the 529 plan

A = you can use it only for four year colleges

B = you do not get taxed for money that is used for college expenses

C = it does not guarantess admission to college

D = your chances of being admitted to college are higher if you have the plan

The true statement about the 529 plan is:

B = you do not get taxed for money that is used for college expenses

A 529 plan is defined as a tax-advantaged savings plan designed to encourage saving for future college costs. It is legally known as "qualified tuition plans," and these are sponsored by states, state agencies, or educational institutions. 529 plan is authorized by Section 529 of the Internal Revenue Code, thus the name 529.

529 plans can either be pre-paid tuition plans or college savings plans. Earning from these plans are exempted from tax as long as these are used to pay off college expenses like tuition, room and board.