Answer & Step-by-step explanation:
A 529 plan (Qualified tuition plan) is a tax-advantaged savings plan for future education costs while a money market account refers to a investment or a deposit with a financial institutionthat earns interest based on the current rates.
The basic advantage of 529 plan over money market account is the tax-advantage that is the amount invested or withdrawn is tax free. It also has high return and funds from it can be used for another beneficiary who is a qualified family member. Whereas the disadvantage is that the 529 plan is a specified fund for future education purposes. This makes it restricted as the fund can not be transferred for a different use. Unlike the money market account whose use is not restricted. It can be withdrawn to meet diverse financial needs including education. Moreso, funds in the money market account are insured and can be easily accessed.
In essence, the 529 plan is a specific investment while a money market account is more general in nature.