3.10.17 By Terry O’Grady I never understood the meaning of Chicago's 70's hit, 25 or 6 to 4. Got the same feeling about 5 to 9, or 529? 529 is a section of the IRS tax code that allows saving for college without paying any taxes along the way. And if you use the money for college, you won't pay any taxes on the growth either. Technically speaking, 529 plans encompass both prepaid and savings plans. For our purposes, we're going to follow common usage that refers to state sponsored prepaid plans, like Florida Prepaid Plan, as prepaid. I'll refer to plans where one puts aside money into a portfolio of mutual funds, with the ultimate outcome unknown, as 529 plans.