Answer:
Option E. A 529 plan
Explanation:
A 529 plan refers to an investment account which has been specifically designed for college savings and enjoys the benefit of being at a tax advantage. In other words, A 529 plan is an investment account which offers earnings that are tax-free, and also ensures that withdrawals are tax-free if the funds are for the purpose of education expenses.
In summary therefore, this plan enjoys a tax-free growth and withdrawals are made for the purpose of higher education.
A 529 plan is one of the best accounts to use when saving for higher education.
