A 529 college savings plan is an investment account opened by an adult for use toward qualified higher education expenses, usually for a child. The person opening the account can place their assets into a variety of investment portfolios made up of underlying mutual funds.
Portfolios range from highly aggressive investment strategies to very conservative, giving account owners the flexibility to not only adjust strategies based on market performance of the underlying funds, but to also adapt the education savings to fit their own financial needs. If invested in a plan sponsored by the state in which the owner files taxes, contributions to the accounts may be state tax deductible. Actual deduction amounts depend on the particular state and the rules set forth by their treasury.
For more information, see the Future Scholar 529 Plan available through Columbia Threadneedle Investments.
Refer to your particular state's program description or consult a tax advisor for more information on federal and state tax treatment.