Start Saving for College
Getting Started With a 529 Plan
A 529 plan is a tax-advantaged investment account designed to help families save for future education costs. To begin saving effectively:
529 Planning Tools
Choosing the right 529 plan involves comparing features, benefits, and fees across different state plans. Here are key planning tools and factors to consider:
Find My State's Plan
View the plans offered in your (or the beneficiary’s) home state.
529 Search & Comparison Tool
Compare plans across states based on the features you care about most.
Questions to Answer Before You Select a 529 Plan
Key Features to Compare
- Plan Type - Savings vs. prepaid tuition plans.
- State Tax Benefits - Deductions or credits for contributions.
- State Incentives - Matching grants or other benefits for residents.
- Fees - Lower fees can meaningfully improve savings growth.
- Investment Options - Age-based portfolios, stock/bond mixes, or stable value options.
- Minimums & Contribution Limits - Initial and ongoing contribution requirements.
- Investment Managers - Some plans let you choose based on the firm managing the investments.
Gifting to a 529 Plan
Giving a 529 plan contribution can be a meaningful gift for birthdays, holidays, graduations, or other occasions. Many plans have their own gifting platform. Here’s how gifting typically works and how to make it easier:
- Friends and family can contribute directly to an existing 529 account (usually by check or ACH).
- Some services let you use credit cards or other methods — just be mindful of fees and processing times.
- Check to see if your state has its own gifting tool.
Maximize Your Gift
Contribute through the existing 529 plan and avoid unnecessary fees.
Understand the Service
Know how gift services work before using them.
Communicate
If gifting to someone without a 529 yet, coordinate with the parent/guardian to make sure they can accept it.
Tax Breaks
Many states allow gift givers to claim state tax deductions or credits.
