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Congratulations to the parents with students graduating in the coming weeks and months. It’s an exciting time.  

I graduated from high school thirty years ago. Upon graduation, I received congratulatory cards with money to help me buy books and maybe the occasional pizza. It mattered to me then, and still matters today, that every dollar I received in my graduation cards was money I didn’t have to take out in student loans to cover the expenses that lay ahead during my first year of college.  

At the time, 529s didn’t exist with the exception of a few pre-paid programs that paved the way for the 529 education savings programs widely used today. If I had graduated today, the money received could have been put to work in a 529 account with the potential to grow.

Here are a few tips to consider for your graduate: 

  1. Send a graduation announcement with a QR code for gifts into their 529 account. 
  2. When loved ones give your graduate cash or checks, deposit the funds and transfer a portion to their 529. 
  3. Encourage continued contributions from your generous friends and family. Money deposited in the future can still benefit from market growth over the next 4–8 years. 

Finally, help your student understand that gratitude is the ultimate return on investment. Encourage them to send handwritten thank-you notes that mention exactly how the gift is being used, whether it’s purchasing a specific textbook or seeding their long-term 529 growth. 

Beyond the initial note, a personal phone call or a brief progress report after the first semester lets loved ones know how their investment is paying off in the classroom, elevating their belief in the investment made, strengthening a support network that will cheer them on well past graduation day. 

About the author: 

Lael M. Oldmixon, M.Ed., is the Executive Director of the Education Trust of Alaska, which offers Alaska’s three 529 plans, Alaska 529, the T. Rowe Price College Savings Plan, and the John Hancock Freedom 529 Plan. She lives in Alaska with her spouse, two children, and two dogs. 

Learn more about Alaska 529 at alaska529plan.com, the T. Rowe Price College Savings Plan at troweprice529.com, and the John Hancock Freedom 529 at jhinvestments.com/529.

On Mother’s Day, we celebrate moms for their countless contributions — one of the most important of which is the priceless role they play with respect to education.

As Learners Themselves
Today, millions of moms aren’t just helping with homework—they’re doing their own. In fact, about one in seven women in college is also raising a child at the same time.

For these moms, going back to school — or starting for the first time — isn’t just about earning a degree or some other credential. It’s about creating a brighter future for their families. It means long days and even longer nights. Classes squeezed in between other responsibilities. Studying at the crack of dawn, after everyone else is asleep, or in any possible quiet moment they can carve out during the day.

In doing so, moms model something powerful. They demonstrate how to invest in yourself, set a goal, and take small, consistent steps toward it no matter your age. 

As Student Loan Borrowers
Even for moms who aren’t currently in school themselves, education in the rearview mirror can still be top of mind. Many are managing student loan debt of their own — as women hold nearly two-thirds of the outstanding post-secondary educational debt. Moms may be diligently chipping away at what they owe while also attempting to save for their children’s educational futures at the very same time.

As Coordinators-in-Chief
And moms are often the ones handling the lion share of school-related oversight and hands-on responsibilities – such as keeping track of assignments and extracurriculars, volunteering at school events, staying in touch with teachers, helping prepare for exams and school presentations and projects, and so much more. They’re also offering encouragement every step of the way. 

And moms are the ones often thinking about what comes next from an academic perspective. When summer approaches, it is moms who are often on point to figure out how to keep their children engaged and learning over the summer break. And soon after, they’re the ones preparing as well for the coming school year. 

As College Savers & Planners
And when the time comes, they’re often the ones leading the charge on college planning — coordinating campus visits, keeping track of deadlines, reviewing applications, reading essays and helping in all possible ways to manage what can be a very emotional time.  

And in the years leading up to this juncture, many moms have likely taken the initiative to learn about ways to prepare for the financial side of education after high school — by exploring 529 saving and prepaid plans, scholarships, and other funding options.  

Worthy of our Gratitude
So, this Mother’s Day, be sure to thank the moms you know for the examples they set through their own lifelong learning, the ongoing commitment they show to education, and the foundation they lay for the futures of the children they love. 

On a personal note, being a mom has been my favorite role of all, and the educational aspects have been particularly rewarding. My mom set such a wonderful example for me to follow. I am so grateful for the support and encouragement she offered my siblings and me. 

About the author:

Patricia Roberts is the Chief Operating Officer of Gift of College Inc. She has been part of the 529 higher education savings arena for more than 25 years, serving as an attorney, product manager, and is the past chair of the CSPN Corporate Affiliate Committee.

Saving for education has always been important, but today, it’s becoming essential.

With rising tuition costs, increasing student debt concerns, and a growing emphasis on financial wellness, families and employers alike are rethinking how they approach education savings. At the center of that conversation? The 529 plan.

At Vestwell, we’re seeing a clear shift: more states, employers, and financial institutions are prioritizing accessible, digital-first education savings solutions that meet people where they are. And 529 plans are evolving right alongside that demand.

Let’s break down why 529 accounts remain such a powerful tool and why their role is expanding.

The Big One: Tax-Free Growth

529 plans offer one of the most compelling advantages in long-term saving: tax-free growth.

Your contributions can grow and earnings are tax-free when used for qualified education expenses like tuition, books, fees, and even certain room and board withdrawals are completely tax-free at the federal level (and often at the state level, too).

Over time, that tax efficiency can make a meaningful difference, helping families keep more of what they’ve saved and invested working for them.

A Growing Patchwork of State Benefits

While federal tax advantages are consistent, state-level incentives add another layer of value.

Many states offer tax deductions or credits for 529 contributions, effectively rewarding families for investing in education. As more states modernize their programs and expand access, these benefits are becoming a key driver of adoption.

Programs like those powered by Vestwell, including partnerships such as Embark in Oregon, which offers a refundable state income tax credit, and VT529, which also offers a state income tax credit, are helping bring these benefits to more families through streamlined, user-friendly platforms.

A Powerful Gifting and Estate Planning Strategy

529 plans aren’t just savings vehicles: they’re also highly effective estate planning tools.

In 2026, individuals can contribute up to $19,000 per beneficiary annually without triggering gift taxes. For those looking to accelerate savings, “superfunding” allows contributors to front-load five years’ worth of gifts:

This strategy gives investments more time to grow while potentially reducing taxable estate exposure, all while maintaining control of the account.

More Flexibility Than Ever Before

One of the biggest misconceptions about 529 plans is that they’re rigid. In reality, they’ve become increasingly flexible, especially following recent policy updates.

Thanks to the SECURE 2.0 Act, unused funds can now serve another purpose. If certain conditions are met, up to $35,000 can be rolled into a beneficiary’s Roth IRA.

That means education savings can double as a launchpad for long-term financial security, even if plans change.

Expanding Access Through Employers

One of the most important shifts we’re seeing today is the growing role of employers in education savings.

Forward-thinking organizations are beginning to offer education savings benefits as part of their broader financial wellness strategy, recognizing that student debt and future education costs are top concerns for employees. Some states offer state tax incentives to businesses that contribute to employees’ 529 plans.  

This is a major step forward in making 529 plans more widely adopted.

Designed for Accessibility

Another reason 529 plans continue to gain traction: they’re built for broad accessibility.

As platforms modernize and onboarding becomes more digital and intuitive, barriers to entry are falling. That’s a critical part of expanding participation nationwide for families that need these saving opportunities the most.

The Bottom Line: Why This Matters Now

529 plans have always been a smart way to save, but today, they’re becoming part of a much bigger ecosystem.

As education costs rise and financial wellness takes center stage, the way people save is changing. Families want flexibility. Employers want to offer meaningful benefits. States want scalable, modern programs.

529 plans sit at the intersection of all three.

At Vestwell, we believe the future of education savings lies in accessible, technology-driven solutions that expand opportunity for everyone, from individuals opening their first account to families that have been saving for years.

If you’re thinking about how to plan for education, whether as a family, employer, or partner, now is the time to act.

Learn more about how modern 529 programs are evolving at Vestwell and nationwide at CSPN. 

About the author:

David Bell is Senior Vice President of Program Management at Vestwell, where he leads Education Savings. This includes 529 plans, Child Savings Accounts and Emergency Savings Accounts. Prior to joining Vestwell, David was the Deputy Director at the Oregon State Treasury where he helped lead the state’s savings programs. David’s work at Vestwell helps to make savings more accessible for individuals, families and historically underserved communities.  

The moment snuck up on me.

One minute, I was packing a tiny backpack and walking my firstborn into kindergarten. The next, I’m sitting in a high school auditorium listening to a counselor talk about college applications, extracurriculars, and financial aid.

My son starts high school this fall. And already, the message is clear: it’s time to think seriously about college.

As I watched him take it all in, I felt both deep pride in the young man he’s becoming and the unmistakable weight of reality.

Are we ready for this?

College is a big, expensive, beautiful milestone. In my experience, it often takes more than one approach to feel truly prepared. That’s where a core principle comes in: diversification.

We often think of diversification in terms of investing—spreading money across different strategies to manage risk and create flexibility. I’ve applied that same thinking to college savings.

What many people don’t realize is that there’s more than one type of 529 plan.

Most people are familiar with the traditional 529 savings plan. You contribute money, invest it in the market, and over time, it can grow. It’s a solid strategy, but like any investment, it comes with ups and downs. Market swings can feel especially stressful as tuition bills get closer.

Less talked about is another type of 529 plan: prepaid tuition plans.

Not every state offers them, but here in Washington, we do. A prepaid tuition plan lets you lock in today’s tuition rates (sometimes at a discount) by purchasing tuition units in advance. That means you can cover the cost of tuition and fees even if costs rise in the years ahead, which they historically have.

We chose to use both.

The prepaid plan gives us predictability. It locks in tuition costs and protects against poor timing, like needing to withdraw during a market downturn. It ensures a core portion of tuition is covered. 

Prepaid plans are typically limited to in-state residents, and their value is based on public in-state university costs. If your child chooses a private or out-of-state school, it may not fully cover the costs, but the value can usually still be applied up to the in-state equivalent. 

That’s where a traditional 529 comes in. Because it’s invested in the market, it offers the potential for higher growth. In states like Washington, both types of 529 plans can also be used for a broad range of qualified education expenses.

For us, it’s about balance—combining the certainty of locked-in tuition with the growth potential of market-based savings. 

Together, they give us confidence we’ll be ready when the time comes.

That night in the auditorium reminded me: planning isn’t just about numbers. It’s about starting early, staying engaged, and making thoughtful decisions over time.

If you’re looking to take some uncertainty off the table, prepaid tuition 529 plans are worth a closer look. And if you have a tax refund this month, consider putting a portion toward your child’s future. It’s a small step today that can make a meaningful difference tomorrow.

About the author:

Lynda Ridgeway serves as Director of Washington’s Education Savings Plans (WA529), where she leads both WA529 Invest and the GET Prepaid Tuition Plan. With more than 20 years of experience in education finance, she is dedicated to helping Washington families access and maximize college savings opportunities. Since joining WA529 in 2022, she also brings a personal perspective to her role as a mother of two sons who benefit from 529 plans, giving her a firsthand understanding of the importance of these programs for families.

While there are many ways to grow your savings, direct deposits from your paycheck offer predictable, gradual growth toward your savings goal. 

Modern payroll systems have greatly enhanced a saver’s ability to direct paychecks electronically to their chosen account. My employer’s payroll system is self-service, which means I can log in to my employee portal and add up to 8 routing and account numbers, including for my 529 account(s). I control how much I send and can change it any time. I’ve chosen to send $75 to my 529 account each paycheck, then deposit the remainder into my checking account for bills and other life expenses. 

It’s not just about ease. It’s about impact. Setting aside these regular contributions has helped me save $1,800 annually toward my family’s education savings goals. That monthly contribution has really added up. If I had directed the funds into a non-interest-bearing savings account, my account would have approximately $32,400 after 18 years of saving. That’s pretty amazing. But with compounding interest at approximately 6% in my 529 account, we’ll have closer to $58,000 by the time my son turns 18! 

Payroll direct deposit is an important tool for building a 529. Annually, consider increasing your direct deposit amount by the cost-of-living allowance (COLA) increase you might receive and adding “bonus” contributions when you receive a bonus at work. Also, consider other methods, such as gifts from relatives, birthday bonuses, and other windfalls, to help build and grow your 529 education savings account.  

In sum, contributions, small and large, add up. Having a consistent contribution stream through payroll direct deposit is a great way to establish the foundation and make progress toward your goal. 

About the author: Lael M. Oldmixon, M.Ed., is the Executive Director of the Education Trust of Alaska, which offers Alaska’s three 529 plans: Alaska 529, the T. Rowe Price College Savings Plan, and the John Hancock Freedom 529 Plan. She lives in Alaska with her spouse, two children, and two dogs.  Learn more about Alaska 529 at alaska529plan.com, the T. Rowe Price College Savings Plan at troweprice529.com, and the John Hancock Freedom 529 at  jhinvestments.com/529.

As pink blossoms appear in our neighborhoods and parks, it’s a clear sign that March has arrived and brighter days are ahead. For families with young children, March often brings playful traditions—like helping kids design elaborate traps to “catch a leprechaun” in hopes of finding a legendary pot of gold at the end of a rainbow.   

Parents and teachers often encourage imagination–helping children find a little magic in their lives. As a mom and former educator, I believe imagination is powerful. It supports cognitive development, inspires creative thinking, and fuels children’s dreams. 

Dreams vs. Fairy Tales

Dreams and fairy tales serve different purposes. Fairy tales inspire imagination. Dreams shape our ambitions. Fairy tales are magical stories filled with impossible scenarios meant to entertain and teach lessons. Dreams are personal hopes that we imagine for our future; they steer us toward goals that, with planning and effort, become reality. Both have value. 

Dreams start at a young age. Encouraging kids to dream about their future shows them the world is full of opportunity. Introducing them to the many ways to pursue higher education shows them that there is more than one path they can take to achieve their dreams. When we take the step to save for our child’s education, we send an even more powerful message: “I believe in your dreams, and I’m helping you prepare for them.”

Create Your Own Pot of Gold

When it comes to funding a child’s education, families don’t rely on mythical treasure; they create their own “pot of gold”. One of the best tools for families to create a “pot of gold” is a 529 college savings plan, a tax-advantaged account designed specifically to help families save for future education expenses. 

Like fairy tales, myths are widely known, untrue tales. But they are not always magical. Despite the benefits, 529 plans are surrounded by common myths that discourage many families from using them. So, let’s clear up a few things about 529 plans. 

Common 529 Myths 

Myth: 529 funds can only be used for college.

Reality: 529 funds can be used at a wide range of accredited post-secondary programs, including community colleges, vocational or trade schools, registered apprenticeships, public and private colleges, graduate programs, and study-abroad. 529 plans can also be used for K-12 tuition and toward existing student loans.

Myth: You must use your home state’s 529 plan. 

Reality: You can participate in most 529 plans regardless of where you live. However, some states offer tax benefits to residents who use their home state’s plan.

Myth: If you enroll in a state-sponsored 529 plan, you can only use it in that state. 

Reality: 529 funds can be used worldwide for qualified education expenses, including tuition, fees, room and board, books, supplies, computers, and equipment for a student’s program of study. If a school accepts federal financial aid, it will also accept 529 funds.

Myth: If your child doesn’t go to college, the money is lost. 

Reality: You have options. If the student beneficiary doesn’t pursue higher education, you can:

Myth: 529 plans significantly reduce financial aid eligibility. 

Reality: The impact is typically minimal. A maximum of 5.64% of a parent-owned account value may be considered when determining financial aid eligibility.

Myth: Only parents can open or contribute to a 529 account. 

Reality: Anyone can contribute—parents, grandparents, relatives, and friends.  

Myth: You must save the full cost of college. 

Reality: Most plans only require a small deposit to get started. Then, you can contribute whatever fits your budget. Every dollar saved reduces the total amount your child may borrow later.

Myth: Managing investments in a 529 account is complicated. 

Reality: Most 529 plans offer simple investment options, including age-based portfolios that automatically adjust risk as your child grows up.

Turn Dreams Into Plans

Discovering a pot of gold at the end of a rainbow is unlikely, but creating one for your child’s future is entirely possible. Saving for education doesn’t need magic; it needs a plan. Many families build their savings gradually using simple strategies:

Fairy tales have an important role in childhood. Stories of catching leprechauns and finding a pot of gold do sound magical. But, when it comes to preparing for our children’s future, the real magic is simple: plan ahead, start saving in a 529 account, make regular contributions, and watch that ‘pot of gold’ grow!   

Jenn Dyck, a Marketing & Communication Specialist for Washington Education Savings Plans (WA529). WA529 offers two 529 savings plan options: the GET 529 Prepaid Tuition Plan and WA529  Invest. Jenn lives in the beautiful Pacific Northwest and enjoys kayaking, traveling, and time with family. She is passionate about education and encourages students (and adults) to pursue higher education. Recently, she completed her bachelor’s degree while her two young adult children earned theirs. It’s never too late to pursue your dreams!

By Nick Thiros, Senior Institutional Relationship Manager, Ascensus

For the past ten years, I’ve had the privilege of educating Idahoans about the benefits of the Idaho 529 plan. Whether I’m meeting with large employers in cities or small businesses in rural communities, one theme always rises to the surface: people want saving for education to feel easier. And employers want to support their teams without adding administrative burden or cost.

Throughout my work partnering with hundreds of companies across the state, I’ve seen firsthand how 529 plans can make a meaningful difference—both for employees and for the organizations that support them. As employers continue seeking smart ways to attract and retain talent, offering a 529 plan has proven to be a simple, impactful addition to any benefits package.

Payroll Direct Deposit: A Simple Benefit Employees Actually Use

One of the most surprising things for many employers is just how easy it is to add their state’s 529 plan as a payroll direct deposit option. There’s no cost to the employer, no complex administrative process, and in many cases, employees can set it up themselves through a self-service HR portal.

For companies without a self-service system, HR or payroll can assist with the initial setup—and from that point forward, the process essentially runs itself. The automation alone is a game changer for employees: one less thing to remember and one more step toward building their education savings.

And “employees” aren’t just job titles. They’re parents, grandparents, aunts, uncles, godparents—and many are saving for their own education as well. Education is lifelong, and at some point, all of us need to learn something new or upskill for the next stage of our careers. That’s part of what makes 529 plans so powerful: they support education at every stage of life.

Employer Contributions: A Growing Opportunity

Employer contributions to 529 plans are still relatively new in the industry, but the momentum is undeniable. Eight states now offer tax incentives to employers who contribute to employees’ 529 accounts. For instance, in Idaho, companies can claim a 20% state tax credit on contributions to employees’ Idaho 529 accounts, up to $500 per employee per year.

These contributions can be structured creatively—much like a 401(k) match—or offered as one-time awards tied to milestones or life events. One employer I work with contributes when an employee welcomes a new baby. It’s a simple, meaningful way to celebrate a major moment while supporting a family’s future education needs.

Employer contributions have become my passion over the years (just ask my coworkers). Companies appreciate having a one-stop shop benefit that helps employees save not only for their loved ones’ education, but also for their own professional development. And with the recent passage of H.R. 1, 529 plans can now support even more education-related expenses, including professional licensing and continuing education requirements.1

Why It Matters

Offering a 529 plan as a workplace benefit adds immediate credibility and removes uncertainty for employees who may be hesitant about investing. Many of us already manage our retirement, health, and other benefits through our employer—it only makes sense to manage our education savings there as well.

Employees deeply value benefits that support their long-term goals, their families, and their future. A workplace 529 plan does exactly that. It’s a benefit that tells employees, “We’re investing in your growth—and in the people who matter to you.”

Where to Begin

If you’re an employer interested in adding a 529 plan to your benefits package, reach out to your state 529 plan; they’ll guide you through the process. And if you’re an employee who wants your organization to consider offering a 529 benefit, start the conversation with your HR team. Many employers simply don’t know how easy and valuable it can be.

I’m excited to see how workplace adoption of 529 plans continues to grow in the years ahead—and I plan to be front and center, helping Idaho employers support the people who move their organizations forward.

About the Author

Nick Thiros serves as a Senior Institutional Relationship Manager at Ascensus, representing the IDeal – Idaho College Savings Program. Since joining Ascensus in 2015, Nick has leveraged his CPA background and strong relationships across Idaho’s business community to help employers implement meaningful education savings benefits. He is recognized as a subject matter expert on 529 plans and a trusted resource for organizations throughout the state.

Footnotes

1Qualified postsecondary credentialing expenses generally include tuition, fees, books, supplies, and equipment required to enroll in or attend a recognized postsecondary credential program, and fees for testing and continuing education if required to obtain or maintain a recognized postsecondary credential. For a program or credential to be considered recognized it must meet certain criteria. Please refer to the 529 Plan’s Program Description for important additional information describing the tax treatment of distributions taken for postsecondary credentialing expenses.

Dear College Savings Plans Network Blogger – 

My newborn grandson is already showing signs of being a mechanical genius. His grip has torque and his interest in bright lights is advanced. This child is clearly going into the trades as a pipefitter or electrician. I understand that with trades, you earn while you learn, and don’t have to pay all the same costs associated with traditional college, which can mean little or no student loan debt. If the costs are so minimal, is it worth it to open a 529 education savings plan? Any insight, not financial advice, is appreciated.

Signed,

Proud Pops

Dear Pops –

Sounds like this kiddo has BIG potential, and a 529 plan could be a great tool for his toolbelt! 529 investment accounts grow tax-deferred, and boast tax-free withdrawals for qualified expenses, including: Registered Apprenticeships, credentialing expenses, college and beyond. 

It sounds like your hesitation to open and fund an account is because your little mechanical genius may not need it. May is the key word here. First, think about why you would save (see more on Why). Whether it’s to keep him out of debt, get him a head start towards qualified expenses he may have, or to simply give him a gift he won’t outgrow, a 529 plan can help tick those boxes. Simply put, opening an account is a way to ensure you have some funds ready for him when the time comes. 

You sound like a common-sense kind of guy, so I’ll leave you with this: it’s better to save than to borrow. That’s right – exactly what your own Nana would have already told you. Enjoy the new grandbaby and make plans now, while time is on your side. 

Next stop? Compare 529 plans to find one that works for you! 

About the Author: Marissa Rowe is executive director of the Indiana Education Savings Authority, which administers the Indiana529 savings program with more than $9 billion in assets under management in three plans. A proud first-generation college student, Marissa received her B.A. in Mass Communication from the University of North Carolina Asheville and her M.A. in Philanthropic Studies from the Indiana University Lilly Family School of Philanthropy. She paid off her student loans in 2020 and has 529 plans for her nieces and grandchildren.

By Jillian Ziegler, Editor, my529, Utah’s educational savings plan

It’s Valentine’s Day, and 529 plans have a lot on offer for anyone looking to save for future qualified education expenses for themselves or loved ones. Love is in the air this time of year — so why not develop a love of saving for higher education? 

_______________                      

So, what is a 529 plan — and what exactly is there to love? 

529 plans are sponsored by states and educational institutions and are authorized by Section 529 of the Internal Revenue Code to offer a tax-advantaged way to save money for education.

Account owners can choose a 529 plan they like and contribute however much or little funds as they want. The 529 plan will keep those funds in investments, and come time to pay for school, any earnings from it won’t be subject to federal or state taxes when used for qualified education expenses. 

After all, the heart wants what the heart wants — and when it comes to choosing between the chance of more loans or the chance to save come enrollment time, the solution to this love triangle is clear. 

You might feel like “qualified education expenses” is pretty limiting, but there are a broad range of career paths and needs that 529 funds can help you or your beneficiary achieve. 

For starters, these qualified education expenses cover tuition at eligible educational institutions that qualify for federal financial aid — most colleges, universities, community colleges and more. This even applies abroad; if your beneficiary wants to head out for an international education, they may be able to use their 529 funds for tuition at many institutions around the world. 

Even if tuition is already covered by 529 funds, other savings or scholarships, your student still has plenty of options to take advantage of those tax-free qualified withdrawals. Room and board for students enrolled at least half-time, books and materials, some fees, computers, internet provider service and more. 

Is the account’s beneficiary not interested in a four-year collegiate education? No problem. Funds from a 529 account can be used for tuition and materials for registered apprenticeships and post-secondary credentials, including qualified trade schools, technical colleges, qualified beauty schools — and that’s only scratching the surface. 

On top of that, if you end up needing some funds to help pay for your beneficiary’s K-12 education, 529 plans can cover up to $20,000 dollars of that annually too! If you need to dip into the savings before high school graduation, you can grab books, certain materials, and qualified educational therapy and tutoring costs outside the home. If there’s private school tuition on the table, 529s can go toward that too.

During your beneficiary’s high school years, 529s can cover things like admission fees and placement tests, as well as dual enrollment in a college or trade school. 

529s can’t be used for everything — unfortunately, every love story needs a little heartbreak — but the list of qualified education expenses is long enough that this blog hasn’t even covered all of it. 

Should an account’s beneficiary end up not needing all the funds for qualified education expenses, that love need not be lost! There are plenty of options to keep the savings train rolling. 

Funds can be reassigned to a different beneficiary at any time if they are a member of the same family as the current beneficiary and under age 19. Alternatively, subject to IRS limits, the funds may be transferred on a tax-free basis to another state’s 529 plan, an ABLE account or a Roth IRA for the beneficiary. It’s easy to incorporate your 529 plan into estate planning too, helping build a legacy of education for future generations. 

One more thing to love about 529 plans is how easy it is to gift to one. 

If your beneficiary’s friends and relatives want to eschew the candy hearts this year (or even supplement them), gifting to their 529 account is a quick way to make a real impact on their future — spreading the love for years to come. 

But how to pick your sweetheart 529 plan? Everyone has their own must-haves when on the investment plan market, and Morningstar is likely to have you covered with their annual ratings of 529 plans nationwide. Whether you’re interested in low fees, high overall ratings or even state tax benefits, this guide is a great place to start. 

So, this Valentine’s Day, look into opening a 529 plan — and maybe Cupid’s arrow will end up giving you a lifelong love of saving for education. 

After all, as the classic Valentine’s poem goes: 

Roses are red
Violets are blue 
Savings can help
when tuition is due!

About the author:

Jillian Ziegler is an editor at my529, Utah’s educational savings plan. She has a cat named Pippin.

*Carefully read the Program Description in its entirety for more information and consider all investment objectives, risks, charges and expenses before investing.

A Morningstar Analyst Rating™ for a 529 college savings plan is not a credit or risk rating. Analyst ratings are subjective in nature and should not be used as the sole basis for investment decisions. Morningstar does not represent its analyst ratings to be guarantees. Please visit Morningstar.com for more information about the analyst ratings, as well as other Morningstar ratings and fund rankings.