A 529 plan was much talked about in 2008, when many involved in this type of plan saw their investments drop 30 percent thanks to the stockmarket debacle. But don’t let that deter you. Here’s the scoop: A 529 plan is a “qualified tuition plan” or a tax-advantaged savings plan. These plans are sponsored by states, state agencies or educational institutions, and are authorized by Section 529 of the Internal Revenue Code. There are two types of 529 plans: prepaid and savings.