human
What are the advantages of a 529 plan over a 401k plan?
assistant
The main advantage of a 529 plan over a 401k plan is that it offers more flexibility with investments. With a 529 plan, you can invest in stocks, bonds, mutual funds, and other investment vehicles, while a 401k typically only allows for investments in mutual funds and company stock. Additionally, 529 plans have higher contribution limits than 401ks, which means that you can save more money each year. Finally, 529 plans also offer tax benefits such as state income tax deductions or credits, whereas 401ks generally do not provide any tax advantages.