529 College Savings Plans

Be ready for college when they are

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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