text: A coverdell 529 plan is a state sponsered education savings program that offers some tax benefits. Money that you put into it are dedicated to the education of one of your kids. It took the place of the education ira as the primary way that people saved money for college expenses around 4 years ago. Every state in the US offers a different plan and some of those plans are better than others in terms of investment selections and plan fees. There is a good website that allows you to input your situation and it will recommend which state plan would work best for you. (You are not locked into the plan for the state in which you live) That website is www.savingforcollege.com. For a lot of people the 529 plan is the ideal way to save for college. You can start one of these plans directly thru the state that you choose or you can go thru a broker. If you go thru a broker you will likely pay fees that you wouldn't pay thru the direct route.