529 College Savings Plan

Be ready for college when they are

Tax Advantages

Earnings and withdrawals for qualified expenses are tax-free.

Anyone Can Save

Open an account for anyone and anyone can contribute.

Save for Any Age

There's no age limit for using the funds.

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 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

Tax deferral

You won't pay on earnings while your money is in the 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, annuities and insurance are not insured by the FDIC or any other federal government agency and may lose value. They are not a deposit or other obligation of, or guaranteed by any bank or bank affiliate and are subject to investment risks, including possible loss of the principal amount invested. Past performance does not guarantee future results.

First Citizens Wealth Management is a registered trademark of First Citizens BancShares, Inc. First Citizens Wealth Management products and services are offered by First-Citizens Bank & Trust Company, Member FDIC; First Citizens Investor Services, Inc., Member FINRA and SIPC, an SEC-registered broker-dealer and investment advisor; and First Citizens Asset Management, Inc., an SEC-registered investment advisor.

Brokerage and investment advisory services are offered through First Citizens Investor Services, Inc., Member FINRA and SIPC. First Citizens Asset Management, Inc. provides investment advisory services.

Bank deposit products are offered by First Citizens Bank, Member FDIC.

Account openings are subject to bank approval.

This information is provided for educational purposes only and should not be relied on or interpreted as accounting, financial planning, investment, legal or tax advice. First Citizens Bank (or its affiliates) neither endorses nor guarantees this information, and encourages you to consult a professional for advice applicable to your specific situation.