Three Families, One Solution: Why 529s Belong in Every Education Journey
From new and expectant parents planning for the future to children starting kindergarten, stepping up to high school, or moving into a freshman dorm, back-to-school season means something different for every family.
And so does a 529 plan.
A 529 combines the power of tax-free investing with the flexibility to adapt to each child’s unique journey from K-12 through college and beyond.
With students now heading back to class and College Savings Month in full swing, three 529 experts at different life stages share their experiences. Discover how they’re using 529 accounts – and how it applies to your education plans.
Kids in college and beyond: Paying a broad range of expenses
Our two sons could be poster children for a 529 plan’s flexibility.
Our firstborn took a traditional route to college and graduated debt-free last May with a bachelor’s degree. We opened his account a year before he was born, made regular monthly investments, and doubled down during high school to avoid falling short. The 529 ended up covering all tuition and housing costs, with enough left over to kick-start his retirement savings. We basically did everything right.
And then we did everything wrong with our younger son. He has disabilities, and we never thought he’d go to college. It wasn’t until middle school that we finally opened his 529 account, using the special five-year gifting option to make up for lost time.
It’s a good thing we did. After one difficult semester at a four-year university and a summer of online classes through community college, our son is now studying media and music at a city college. Through it all, our 529 has been there to pay every qualified expense, including a special needs counselor and even his music equipment.
There’s no greater gift than giving your children the freedom to choose the right schools for them. My hope is for every family to feel that same sense of comfort with their loved ones. Here’s my advice:
- Don’t procrastinate. Regardless of your family’s situation, your kids are likely to go to college. And if they don’t, a 529 plan gives you plenty of options. You could name another family member as the account beneficiary. You could use the funds for other qualified education expenses, such as apprenticeships, career credentialing programs, or a sibling’s student loans. You can even transfer eligible amounts to a Roth IRA to give kids an early start on retirement.
- Put college savings on autopilot. There will always be a reason to skip 529 contributions. Set up automatic investments to stay on track when everyday life tries to derail your plans.
- Find ways to save more. You think you can’t, but you can. For example, instead of investing once a month, consider contributing part of each paycheck, along with tax refunds, bonuses, gifts, and other extra money. You’ll be surprised how it adds up over the years.
Tricia Scarlata
Head of 529 Education Savings, J.P. Morgan Asset Management
Kids in high school: Ramping up 529 contributions
College is starting to feel very real now that our 15-year-old daughter is in high school. It’s exciting and terrifying and every emotion in between.
Fortunately, we have been preparing financially since opening a 529 account shortly after she was born. As college gets closer, we are becoming more diligent about increasing investments. In addition to automatic monthly deposits, we are now making quarterly catch-up contributions to boost her account.
A 529 plan is a great way to get family and friends involved, too. In our case, my mom has been funding a second account for our daughter through a combination of payroll deductions, monthly contributions, and gifts.
Between those two accounts and the money currently allocated toward private high school, we hope to pay for all four years of college. If everything goes well, we may even have enough for an advanced degree or Roth IRA rollover. We will continue adding to our 529 during college years to replace some of what we withdraw and to take advantage of state income tax deductions.
In hindsight, I wish we had invested more when our daughter was younger to maximize tax-free compounding. Having said that, I would also tell families that it’s never too late to get started or save a little more. Even if college is coming soon, you still have time to put a nice dent in the expenses – and ease the debt burden on your kids and grandkids.
Greg Starita
529 Relationship Manager & Investment Specialist, J.P. Morgan Asset Management
Kids in the future: Getting a head start on college savings
After just one week working in the 529 space, I was sold. I had gotten married only a month earlier. Even though my wife and I don’t expect kids for a few more years, we already opened a 529 account, with me listed as beneficiary until our first child arrives.
For me, getting started early wasn’t about trying to predict the future. It was about giving ourselves more time for compounding and for building good savings habits before life gets busier.
Reviewing J.P. Morgan Asset Management’s college planning guide was all the motivation I needed. Today, we’re making modest monthly contributions and plan to increase them over time. I’m also fortunate that both my parents and my in-laws have opened accounts for their future grandchildren.
What appealed to us most is the flexibility. A 529 eases the uncertainty of saving for a future still many years away. We hope to send at least two children to college someday, but if our plans change, our 529 accounts will adapt with us.
That’s why I encourage other young couples to start saving sooner rather than later, even if it’s only a small amount each month. Don’t let the “what-ifs” stop you, and don’t feel like you need to cover every future college expense on your own. Save what you can, automate the process, and make it a habit. Over time, small contributions add up, and a consistent plan can make a meaningful difference.
Joe Schulman
529 Relationship Manager & Investment Specialist, J.P. Morgan Asset Management
About the authors:
Tricia, Greg and Joe are members of the 529 Education Savings team at J.P. Morgan Asset Management, where they support families and financial professionals planning for college. J.P. Morgan Asset Management serves as investment manager for two 529 plans and produces the award-winning1 College Planning Essentials guide to help investors make well-informed decisions with their education dollars.
Disclosures
1 Gramercy Institute, Financial Content Marketing, Business-to-Multi-Target Single-Country Award, Asset Management Marketing, Focus Award Single-Country Collateral, Fall 2025.
This is a general communication being provided for informational purposes only.
It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own financial professional, if any investment mentioned herein is believed to be appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable indicators of current and future results.
To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our privacy policies at https://am.jpmorgan.com/global/privacy.
J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.
If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance.