A Qualified Tuition Program (QTP) also called "529 plan", formerly called a Qualified State Tuition Program (QSTP), is established and maintained to allow either prepaying, or contributing to an account established for paying a student's qualified higher education expenses at an eligible educational institution. States and eligible educational institutions can establish and maintain QTP(s).

An eligible educational institution is generally any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education.

Contributions to QTP — Contributions to a QTP on behalf of any beneficiary cannot be more than the amount necessary to provide for the qualified higher education expenses of the beneficiary. Contributions made to a QTP are not deductible on your Federal tax return.

For additional information, refer to Chapter 8 of Publication 970, Tax Benefits for Education.