The Independent 529 Plan is a prepaid tuition 529 plan. The list of participating colleges is getting quite large, but many people may not feel comfortable making the gamble that their kid will attend a member college.

However, if a child does end up getting accepted to a member college and decides to go there, parents can use the independent 529 plan to purchase the senior year’s tuition at today’s rate (regular 529 gifting limitations apply). With college tuitions growing at close to double the rate of inflation this is a great way to lock in some relatively high short term tax advantaged returns.