Families may choose to save for college or elementary and secondary education expenses using tax-advantaged qualified tuition programs (QTPs), also known as 529 plans. This report provides an overview of the mechanics of 529 plans and examines the specific tax advantages of these plans. Specifically, this report is structured to first compare "savings" and "prepaid" 529 plans and, second, to examine the income and gift tax treatment of 529 plans, using a stylized example to illustrate key concepts. The report also examines the tax treatment of rollovers and the interaction of 529 plans with other education tax benefits and looks at how 529 plans are treated in the federal needs analysis for financial aid. Finally, the report summarizes recent legislative changes.