​The college savings accounts known as 529 plans have multiple benefits for parents saving for their children's education: tax savings on earnings when used for qualified expenses; additional tax deductions on contributions in certain states; and the ability to front-load accounts without the threat of a gift tax.arents can open a regular 529 account to save for additional qualified expenses, such as books, computers, and room and board, says Nancy Farmer, president of Private College 529 Plan, a prepaid tuition plan sponsored by more than 275 private colleges and universities.