There are currently two types of 529 plans available, a savings plan and a prepaid tuition plan, with states typically offering both types of plans. The savings plan is designed similar to a retirement plan, with funds invested as directed. The prepaid tuition plan allows you to pay tuition through installment payments, but typically does not include room and board. Currently, educational institutes can offer a prepaid 529 plan but not a 529 savings plan.
You are not restricted to investing in a plan offered by your own state, though state tax benefits may be limited to plans offered in your resident state. Most plans do not restrict school eligibility to the state where the plan originates, though it’s always best to check with the school to ensure that they are an eligible institution under 529 plan rules.
A great vehicle for saving for college tuition and related college expenses, and now even private elementary and secondary school tuition, be sure to check with your state to determine what plans are available and what would work best for you.