<human>:  What are the differences between a 529 plan and a traditional college savings account?
<bot>: The main difference between a 529 plan and a traditional college savings account is the taxation rate. A 529 plan is a tax-advantaged investment account that allows individuals, often parents, to save for their children's collegiate education expenses, including tuition, books, and other related expenses. These accounts are generally easier to use than traditional savings accounts, as they allow you to invest your money tax-free. However, the earnings are subject to a 10% penalty if they are used for anything other than qualified higher education expenses. In contrast, traditional college savings accounts, such as Coverdell ESAs, do not provide the same tax benefits as 529 plans. Those who opt for a traditional college savings account will have to pay taxes on their earnings. Additionally, the money can be used for a variety of educational expenses, not just college.