INDIANAPOLIS — A 529 plan is a powerful tool to help your savings keep up with the rising cost of education.

There are two types: a prepaid account, which allows you to purchase future tuition credits at a university at today's prices, and an investment account.

Sam Taube with NerdWallet said the investment accounts work a lot like retirement accounts.

"They allow you to invest and grow your money for future educational expenses," Taube said.

Each 529 account is tied to a person — known as the beneficiary — and offers a major advantage: federal tax-free growth on your investments.

States, including Indiana, can also offer extra tax breaks. To maintain that benefit, the money you take from the account must go toward a qualified educational expense.

While most people associate 529 mone

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