529 College Savings Plans

Be ready for college when they are

Tax Advantages

Earnings and withdrawals for qualified expenses are tax-free.

Anyone Can Save

Open a 529 account for anyone and anyone can contribute.

Save for Any Age

There's no age limit for using 529 savings funds.

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Eligibility
A tax-advantaged college savings investment account

Find out how anyone can save for college with a 529 plan.

  • Anyone 18 or older can open a 529 college savings plan
  • There are no state residency requirements
  • Use your funds at any accredited school eligible to accept federal financial aid

Contributions and withdrawals

No annual limit

Contribute as much as you want to this 529 account annually. However, most states impose a lifetime limit on the amount allowed in an account.

Qualified education expense

Make sure you're withdrawing funds for qualified education expenses, such as tuition, room and board, and books. Your withdrawals will be made tax-free.

Taxes on 529 college savings plans

Tax deferral

You won't pay on earnings while your money is in a 529 savings account.

Unqualified expenses

If you withdraw funds and don't use them for qualified educational expenses, the earnings portion of the withdrawal will be subject to state and federal income tax, as well as an additional 10% penalty.

Federal gift tax

Contributions to your 529 plan are subject to federal gift tax laws, and excess contributions can result in gift tax implications.

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Your investments in securities and insurance products are not insured by the FDIC or any other federal government agency and may lose value. They are not deposits or other obligations of, or guaranteed by, any bank or bank affiliate and are subject to investment risks, including possible loss of the principal amounts invested. Past performance does not guarantee future results. There is no guarantee that a strategy will achieve its objective.

About the Entities, Brands, Products and Services Offered

First Citizens Wealth® (FCW) is a registered trademark of First Citizens BancShares, Inc., a bank holding company. The following affiliates of First Citizens BancShares Inc. are the entities through which FCW products and services are offered. Brokerage products and services are offered through First Citizens Investor Services, Inc. (FCIS), a registered broker-dealer, Member FINRA and SIPC. Advisory services are offered through FCIS, First Citizens Asset Management, Inc. (FCAM), and SVB Wealth LLC (SVBW), all SEC registered investment advisers. Certain brokerage and advisory products and services may not be available from all investment professionals, in all jurisdictions, or to all investors. Insurance products are offered through FCIS, a licensed insurance agency. Banking, lending, trust products and services, and certain insurance products are offered by First-Citizens Bank & Trust Company, Member FDIC, and an Equal Housing Lender icon: sys-ehl, and First Citizens Delaware Trust Company.

All loans provided by First-Citizens Bank & Trust Company are subject to underwriting, credit, and collateral approval. Financing availability may vary by state. Restrictions may apply. All information contained herein is for informational purposes only and no guarantee is expressed or implied. Rates, terms, programs, and underwriting policies are subject to change without notice. This is not a commitment to lend. Terms and conditions apply. NMLSR ID 503941

For more information about FCIS, FCAM, or SVBW and its investment professionals, visit FirstCitizens.com/Wealth/Disclosures.

See more about First Citizens Investor Services, Inc. and our investment professionals at FINRA BrokerCheck.

Account openings are subject to bank approval.

This material is for informational purposes only and is not intended to be an offer, specific investment strategy, recommendation, or solicitation to purchase or sell any security or insurance product, and should not be construed as legal, tax, or accounting advice. Please consult with your legal or tax advisor regarding the particular facts and circumstances of your situation prior to making any financial decision. While we believe that the information presented is from reliable sources, we do not represent, warrant, or guarantee that it is accurate or complete.