In general, there are two types of 529 plans: prepaid tuition plans and college savings plans. Plans are named after Section 529 of the Internal Revenue Code which created these types of savings plans in 1996. They provide federal and/or state tax benefits to participants. Every state offers at least one version of a 529 plan but depending on the state and version of the plan, benefits may differ.

As long as the plan satisfies basic requirements, the federal tax law provides special tax benefits to the plan participant. Some states offer tax incentives to investors as well.

On July 19, 2011 the Municipal Securities Rulemaking Board (MSRB) issued a request for public comment on a plan to create a centralized system for the collection and distribution of market information for 529 college savings plans. The MSRB currently uses the Electronic Municipal Market Access (EMMA) system to collect 529 plan disclosure documents; however, no other market information regarding 529 plans is currently collected. The request for comment includes seven questions in an attempt to determine whether collecting further 529 plan data (such as total plan assets, quarterly contributions and withdrawals, total number of active accounts and total rollover distributions) would be useful to investors and other market participants.