<prompt> Human: I consider myself to be reasonably well informed about investing, but I find 529 plans to be a bit difficult to wrap my mind around. Could anyone help clarify aspectstipsguidelines for these plans?If youd like an example scenario, Im in my late 20s and my fiance is going to an MBA program next year in IL. Im trying to figure out if it would be worth pumping all of our tuition payments through a 529 to reduce our taxes during that time.Thanks  <response>: It only reduces your state taxes if you state offers a tax deduction for 529 contributions. 529 contributions do not reduce your federal taxes, but gains are tax free if used for qualifying education expenses. 