By Regina Carmon, Sr. Director, Tuition Financing Relationship Manager

Reposted from January 14, 2025

Dr. Martin Luther King Jr. contributed countless lessons about life, purpose, and service. Although rooted in the civil rights movement, his wisdom also offers guidance for how we plan for the future of those we love. As we consider decisions about supporting our families and building up our communities, let Dr. King’s words inspire us to prioritize meaningful actions.

“Life’s most persistent and urgent question is, ‘What are you doing for others?’”Dr. King asked this in 1957 during a speech in Montgomery, Alabama, during the civil rights movement. It remains just as relevant today. For parents, grandparents, aunts, uncles, and mentors, this question resonates deeply. It’s not just about the day-to-day ways we care for our loved ones, but also about the long-term opportunities we create for them.

One of the most impactful answers to this question can be investing in their education. A 529 savings plan is one of the best tools to accomplish this in a tax-advantaged way. Whether you’re saving for college, vocational training, certain apprenticeship programs, or even K-12 tuition, a 529 savings plan helps you prepare for the rising costs of education while easing the financial burden on future generations.

Sounds simple enough, yet few Americans are taking advantage of the opportunity. The idea of saving for a child’s education can feel overwhelming, especially with the rising cost of college and other financial responsibilities competing for our attention. That’s where another quote from Dr. King becomes relevant:

“Be a bush if you can’t be a tree. If you can’t be a highway, just be a trail. If you can’t be a sun, be a star. For it isn’t by size that you win or fail. Be the best of whatever you are.”

A decade later, in a 1967 speech at Glenville High School, Dr. King reminded us that it’s not the size of our contribution that matters but the effort and intention behind it. You don’t need to fully fund a 529 account overnight or aim to cover 100% of future education costs. Thanks to the power of compounding, every contribution, no matter how small, can grow over time. Start saving early; a little each month can make a significant difference years later.

When you open a 529 savings plan, you’re answering the call to do something meaningful for others. You’re giving your child or loved one the gift of opportunity, reducing the financial stress of pursuing their dreams, and setting an example of generational generosity.

Why Choose a 529 Plan?

1. Tax Benefits: Contributions grow federally tax-deferred, and withdrawals for qualified educational expenses are tax-free. Many states offer additional tax deductions or credits for contributions.
2. Flexibility: Funds can be used for a variety of educational expenses, including tuition, books, room and board, certain student loan repayments, and unused funds may be eligible for a rollover to a Roth IRA (subject to rollover rules and limits).
3. Control: As the account owner, you maintain control over the funds earmarked for an intended purpose.
4. Accessibility: Even if you can’t contribute large amounts, consistent small contributions can still yield meaningful results over time. The best part is your village—family and friends—can contribute to your account.

Living Out Legacy

As we reflect on Dr. Martin Luther King Jr.’s words of wisdom, let them inspire us to take meaningful action for the people we care about most. A 529 plan is more than a financial strategy—it’s a way to answer the call to serve and invest in the future.

When you think about the question, “What are you doing for others?” consider how even the smallest steps toward educational savings can be transformative. When you doubt whether your contributions are enough, remember Dr. King’s advice: “Be the best of whatever you are.” By doing your best—whatever that looks like for you—you’re planting generational seeds of opportunity, growth, and success.

Be inspired to act today. Consider opening a 529 plan, make consistent contributions, and start building a legacy that will empower the next generation to live their dreams, pursue their passions, and one day inspire them to do similar for another.

About the Author
Regina Carmon has worked within the 529 industry since 2009 and joined TIAA as Sr. Director, Tuition Financing Relationship Manager in 2022. Regina is the proud parent of her daughter Raye Nicole; and pets Bentley and Jet. She enjoys collaborating on ways to bring financial literacy to the underserved, volunteering monthly to distribute food, serving on the media ministry at church, experiencing cuisines from travels near and far, and spending time with family and friends.

Please read the Plan Description on www.tiaa.org/529 carefully prior to investing, for details on its investment objectives, risks, charges, and expenses, and whether your home state offers tax or other benefits such as financial aid, scholarship funds, or protection from creditors for investing in its own 529 plan. More information about municipal fund securities is available in the issuer’s Plan Description. Investments in the plan are neither insured nor guaranteed and there is the risk of investment loss. Consult your legal or tax professional for tax advice. TIAA-CREF Tuition Financing, Inc. (TFI) is the Plan Manager for several state 529 plans, and TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, is the distributor and underwriter for those plans. 4132995-0127

 Talking to kids about money isn’t always easy, but it can be fun. With a bit of creativity, families can turn future planning into something kids look forward to.  A 529 College Savings Plan makes it simple for parents, grandparents, and guardians to save for a child’s education, and just as importantly, it offers an excellent opportunity to help kids learn about goals, responsibility, and the power of small steps.

Here are a few playful, kid-friendly ways to make saving for their future exciting:

1. Turn It Into a Game

Kids love challenges. Create a “Savings Scoreboard” where they can track their contributions, whether it’s birthday money, a portion of their allowance, or a reward for helping around the house. Seeing their progress visually helps them stay engaged and take pride in their efforts.

2. Celebrate Milestones

Did your child reach a savings goal, big or small? Celebrate it! A special sticker, a family high-five moment, or a fun note of encouragement helps reinforce that saving is something to be proud of. 529 accounts grow over time, and marking milestones keeps kids motivated along the way.

3. Make It Personal

Let kids dream big. Whether they picture themselves as a scientist, teacher, artist, or engineer, connecting the idea of saving to their future aspirations makes it more meaningful. Talk about how their 529 account is one way you’re helping them get closer to those dreams.

4. Tie It Into Everyday Life

Future learning isn’t just about college; there are many paths kids can take. As you visit museums, libraries, sports events, or science centers, mention how their 529 savings could help them pursue interests like these one day. It helps them connect saving with real-life experiences they already love.

5. Let Family Join the Fun

When relatives contribute to their 529 account as a birthday or holiday gift, kids can see that the people they love believe in their future, too. Encourage them to create homemade thank-you cards or videos, turning gratitude into a fun tradition.

Saving Today for Tomorrow’s Adventures

Every contribution to a 529 College Savings Plan account, no matter how small, helps build a foundation for future opportunities. And when saving feels exciting and empowering, kids begin to understand that they’re investing in something big: their own dreams.

With 529 College Savings Plan, families can make planning for the future simple, meaningful, and yes… even fun.

About the Author
Cheryl Rapp is the College Investment Program Finance Officer at the Wisconsin Department of Financial Institutions, which oversees Edvest, Wisconsin’s 529 Plan. Edvest has been helping families save for education since 1997. Rapp has over 25 years of experience working for the State as the College Affordability Specialist prior to joining the College Savings Program.  Her experience includes educating students, parents, teachers, and school counselors on the value of and how to complete the Free Application for Financial Student Aid. In her current role as College Investment Finance Officer for the Wisconsin 529 College Savings Program, Rapp manages outreach to Wisconsin residents. She works to increase awareness of the plans among Wisconsin residents while helping them begin saving for their children’s higher education. She is a graduate of the University of Wisconsin-Green Bay, from which she earned a bachelor’s degree in Humanistic Studies.

By: South Carolina State Treasurer Curtis Loftis, Administrator of Future Scholar College Savings Plan

As South Carolina’s Treasurer, I know that having a financial plan is crucial to a happy and healthy life. So, whether you make resolutions or not, I hope you’ll begin 2026 with some simple financial planning. By following a few tips, you can make sure you’re able to save money for both your future – and your child’s future.

1. Edit and negotiate.

What fees do you pay each month? Are you still sure you need these services? For example, are you watching all of the streaming services you’re signed up for? Or are you working out at the gym so that the membership fee you’re paying is worth it? If not, edit the services you signed up for but no longer need.

Have you noticed your insurance premiums have gone up? If those rates have gotten too expensive, a different insurer could save you some money – or negotiate a better rate with your current carrier. Are you carrying a balance on your credit card? If paying off high interest credit cards isn’t possible, try to negotiate a lower rate with your lender. Explain any life events, such as illness or a job status change, which could affect your ability to pay your debt. Wherever possible, shop around and negotiate the rates you pay for services.

2. Keep an eye on your financial future.

Do you have retirement accounts from different employers? If so, consider consolidating your funds into one account, such as an IRA. Consolidating makes it easier to keep an eye on your future. 

If you have investments, take the time to analyze each one to identify and weed out any poor performers. Consider consulting your financial advisor to help you make important decisions about which investments you want to keep and which ones need to go.

3. Invest in your child’s future.

I hope you’ll make 2026 the year you choose a 529 education savings plan for your child’s future. Whether your child wants to become a teacher, a chef, a dentist, or an engineer, saving money for your kid’s education will boost the chances of fulfilling those future dreams. 

By opening a 529 college savings account now and starting to save as early as possible, you give your investment more time to grow. Your savings grow tax-free, and when it’s time to use your funds, you withdraw the money tax-free also, as long as you use it to pay for qualified educational expenses. A tax-free investment in your child’s future is a smart and important plan for 2026.

Most families decide to save with 529 plans because of their substantial tax advantages, but you’ll also be happy to find that 529 plans make the process of saving for education simple. Most plans feature quick online applications, and many allow you to set up automated contributions if you like. 

If you already have a 529 account, congratulations! 

You have a smart plan for your child’s future. Consider increasing your monthly contribution for 2026. Did you receive a work bonus or tax credit you can put toward your child’s college savings for a savings boost? Perhaps you have family and friends who would like to contribute to your child’s account for birthdays or special occasions? If so, no gift could be better than a gift of education.

Happy New Year! 

I hope 2026 is your best year yet. Having a New Year’s plan is a great way to make your family’s finances even healthier. And having a 529 plan to save for your child’s education is the perfect way to make your child’s future even brighter. 

About the author: Curtis Loftis is the State Treasurer of South Carolina. He also serves as the administrator of South Carolina’s Future Scholar 529 College Savings Plan. Visit treasurer.sc.gov or futurescholar.com for more information on ways to save through a 529 plan.

LaKesha Page, Director of College Savings and ABLE TN, State of Tennessee Treasury Department

December 23, 2025

As the holidays bring peace of mind through connection with family and friends and the traditions that make each holiday special, we also have an opportunity to focus on what matters to us. For many families, this means cherishing the people we love and building a legacy that empowers our children to reach their full potential. As you prepare for the opening of gifts this holiday, remember: the greatest gifts aren’t just found under the tree. They are also in the actions we take to prepare for our children’s futures. 

As a mother of three children in their twenties, I cherish holidays spent with them, and I also know how quickly time passes. It seems it was just yesterday that we were celebrating our first Christmas as a family. Now, each of them has grown into phenomenal adults. So much of their current success is attributable to early preparation. However, I did not do it alone – it was with immeasurable divine grace and support from family and an amazing village along the way. All three have completed post-secondary education. My oldest pursued his education at a trade school, and my other children attended traditional baccalaureate institutions. My youngest is currently in graduate school. Though their paths differ, they share a common thread: each is a happy and productive young adult, passionately pursuing work aligned with their talents, contributing to their communities, and building meaningful lives. Reflecting on their journeys, knowing preparation made a difference, brings me peace, especially when I welcome them home and spend time with them during the holidays. 

I know I’m not alone in this sentiment. In my role as Director of College Savings, I’ve had the privilege of speaking with families about why they chose to save early for their children’s futures. One family, saving for their three children ages four, five, and eight, shared: “Having 529 accounts means we’re taking an active step toward each of their futures. It means their educational goals and career aspirations are worth planning for and investing in now.”

Another mother, saving for her three-year-old daughter, told me: “Saving early gives me peace of mind and hope for a bright future for my child.”

You, too, can have peace of mind through preparation, whether you contribute to an existing 529 account this holiday season, or whether this article is the impetus for you to open a new 529 account. By investing early, such as the family with three young children and the mother of a toddler, you’re not just saving money—you’re building the foundation and creating opportunities for your child to have a bright future. The earlier you begin saving, the more time your investment can grow over time. And, you also do not have to proceed alone. It takes a village, so invite your family and friends to join you in the journey by gifting into your child’s 529 account or establishing their own account. 

Saving and investing in a 529 account is a way to manifest your belief in your child’s future, and it is an action with tremendous impact that could bring you peace of mind this holiday season and in the years to come. 

About the Author:

LaKesha Page is the Director of College Savings and ABLE TN for the State of Tennessee Treasury Department. The TNStars College Savings 529 Program was launched in 2012, and ABLE TN was launched in 2016 under the leadership of Treasurer David H. Lillard, Jr. TNStars is designed to give Tennessee families high quality investment options at a low cost to help them put aside money for qualified higher education expenses. One of the nation’s first Achieving a Better Life Experience programs to launch, ABLE TN has provided a valuable resource to help individuals with disabilities save to pay for qualified expenses.

By South Carolina State Treasurer Curtis Loftis, Administrator of Future Scholar College Savings Plan

December 17, 2025

There’s no escaping the hustle and bustle of December. Even if you love gift shopping, Christmas music, and holiday parties, the end of the year is often nothing short of exhausting.

While I know the most wonderful time of the year is probably also your busiest, I’d like to recommend you add a simple activity that could help boost your savings and lower your taxes.

Review your 529 savings.

Start by reviewing the amount of savings in your account. Are you on target to meet your savings goals? Next, review the contributions you have made to your 529 account this year. Have you contributed all your budget allows?

By contributing as much as possible as early as possible, your college savings have the chance to grow over time, and your earnings will have the ability to be compounded for as long as possible. If your budget allows, consider an additional contribution that could not only boost your college savings, but may also help you reap the benefits of state tax incentives.

Be sure to keep the following in mind when considering an end-of-the-year (or anytime) contribution:

1. Know what you can save on your state income taxes.

Of the 41 states that require state income tax, 37 along with the District of Columbia provide tax incentives to families who save with a 529 plan. These states allow families to receive an income deduction or a tax credit, for contributions to a 529 plan account. For example, my state of South Carolina allows residents to deduct 100% of their 529 contributions to Future Scholar, South Carolina’s 529 plan. Nine of the 37 states that offer tax incentives also provide tax parity, allowing contributors to take a state income tax deduction on contributions made to any state’s plan they choose. It’s important to review your plan to see if you can save on state income tax.

2. Know the deadlines for receiving income tax benefits.

You can contribute to your 529 account at any time. However, each state sets a deadline for making contributions that qualify for tax savings for the current year. Most states have a deadline of December 31, 2025, to claim contributions on your 2025 state income tax returns. A few states allow contributions to be made until April the following year. Consult your plan to find out your deadline for making contributions you can claim on this year’s returns.

3. Consider front-loading your account.

If you are financially able, you may want to consider frontloading your 529 college savings plan. Front-loading allows a larger amount of money to be given at one time so the funds can compound for longer than they would if they make regular annual contributions.

The IRS has a special gifting provision for front-loading 529 accounts that allows you to exceed the $19,000 annual gift tax limit for an individual (or $38,000 for spouses). When you front-load, you contribute a one-time gift of the amount usually allowed over five years – without the gift tax consequences. That’s five years-worth of maximum contributions at one time ($19,000 x 5 = $95,000).

By front-loading, you can contribute $95,000 per child in year one, sit back, and enjoy the benefits of compounding interest on the larger amount. The contribution is tax deductible and will be treated as if you gave $19,000 per year for five years by the IRS. If you file jointly, you and your spouse are allowed to front-load up to $190,000. It’s important to remember that any gifts you make to the account beyond these amounts over the five years could be subject to federal taxes. A tax professional can help you decide if front-loading is good for your family.

4. Decide to use your tax refund for what’s important.

Are you expecting a tax refund check in 2026? Consider using it to invest in your child’s future education. Earmark it now for a lump sum contribution to boost the college savings in your 529 account. That way you won’t be tempted to spend it on something less meaningful.

5. Appreciate the tax-free benefits of saving for college with a 529 plan.

Enjoy these last days of 2025 and the wonderful benefit of growing your 529 savings tax-free. Before long, the time will come when you’ll be using those funds to pay for qualified education expenses like tuition, computers, meals, and housing. And when you do, I know you’ll be thrilled that the funds you watched grow tax-free will be withdrawn tax-free, too.

This article was originally posted in December 2023 and has been updated to reflect new information for 2025.

About the author: Curtis Loftis is the State Treasurer of South Carolina. He also serves as the administrator of South Carolina’s Future Scholar 529 College Savings Plan. Visit treasurer.sc.gov or futurescholar.com for more information on ways to save through a 529 plan.

By Jenn Dyck, Marketing & Communication Specialist, Washington Education Savings Plans (WA529).

December 9, 2025

Let’s be honest—holiday shopping can feel like an Olympic sport. You sprint through malls, dodge crowds, and try to decide if you should get toys, tech, books, or clothes for all the kids in your life. Holiday shopping lists often feel overwhelming. Imagine giving a meaningful gift this year that won’t require you to wait in another long line to buy it. Consider giving the gift of higher education. It is a meaningful and long-lasting investment in a child’s life.

Making a gift contribution to a 529 plan is a great way to save for tomorrow’s higher education costs for someone you love in a tax-advantaged way. It doesn’t come in a big, shiny box to open, and it won’t light up or make noise (thank goodness). But it might just be the smartest, most thoughtful gift you ever give. After all, “the best gifts do come in small packages”. In this case, that small package grows into secure (tax-free) education funds that support a child’s dreams.

“Don’t Judge a Book by Its Cover”

At first glance, making a gift contribution to a 529 account doesn’t exactly scream “exciting.” The box is not very big, there is no squeal of surprise, and chances are, it wasn’t on their wish list. But “don’t judge a book by its cover.” What looks like a boring, simple deposit that they won’t use today will help cover the “burden” of higher education costs in their future (for which they will be eternally grateful).

Think about it: the latest toy or tech gadget could be obsolete by next year, while a 529 account will quietly build value—like a hard-working elf in the background.

“Size Doesn’t Matter” (Not When It Comes to Education Savings)

Some people are overwhelmed with the idea of saving for higher education because they think they need to save enough to cover the whole cost. That would be nice (in an ideal world), but it simply isn’t realistic for most of us. Size really doesn’t matter. With most 529 plans, you can start with a small amount and make a significant impact in a child’s future by saving what you can, when you can.  

Whether you start with $25 or $250, every contribution adds up over time and helps a child pursue their dreams after high school. As a parent of two recent college grads, I can tell you that all our seemingly “small” gift contributions added up quickly and were 100% the best gift we ever gave our children! The purpose of a 529 plan is to make saving (in a tax-advantaged way) easy, flexible, and accessible. Every dollar you save gets you closer to covering some, most, or all of a child’s higher education costs, no matter what path they choose after high school.

“The Proof Is in the Pudding”

If contributing to a 529 education savings plan as a holiday present sounds too practical, not fun enough, or makes you feel like a holiday fruitcake, don’t worry, you are not alone. However, the proof is in the pudding; hundreds of thousands of families already save for college and career training using a 529 savings plan. Nearly every state offers at least one state-sponsored 529 plan. Families use 529 plans to cover higher education expenses at schools worldwide every year, reducing or eliminating the burden of student loan debt.  

Anyone can make a gift contribution to a child’s 529 account and help their education savings grow. Family (and friends) might even make gift contributions a tradition for birthdays, milestones, holidays, and other special occasions.

“Give and You Shall Receive”

Here’s the irony of giving the gift of education: give and you shall receive. Maybe not right away—but years from now, you will see and feel the payoff when the child for whom you’re saving walks across a graduation stage. You’ll have the privilege of knowing, “I helped make that happen,” and you might even receive the gift of gratitude from the recipient. Think of the tax benefits of saving in a 529 account as another ‘give and you shall receive’ perk!

“It’s the Thought That Counts”

Loved ones might not squeal when they open an envelope and find a 529 contribution/gift certificate instead of a new smartwatch. However, when it comes to meaningful gifts, it really is the thought that counts. You’re not just giving money—you’re showing a child you believe in their dreams. You’re giving them an opportunity and paving a path toward a bright future.

Wrapping up: “The Best is Yet to Come”

Long after the wrapping paper is gone and the excitement about holiday gifts is forgotten, a child will always remember the gift that made a difference. When they graduate with little to no student debt, they might even forgive you for not buying them the smartwatch they were hoping for.

This holiday season, skip some of the chaos and give a small package with a BIG gift inside. Whether it’s for your kids, grandkids, or a special little someone in your life who probably already has too many toys, consider contributing to a 529 account in their name. It may not jingle, sparkle, or come with a remote control, but it is the gift where “the best is yet to come.” When it comes to a child’s future, the best gifts definitely come in small packages (or envelopes), and the return on your investment is absolutely priceless.

About the author:

Jenn Dyck is a Marketing & Communication Specialist for Washington Education Savings Plans (WA529). WA529 helps families save for education expenses in tax-advantaged plans and reduce or avoid future student loan debt. WA529 offers two 529 savings plan options: the GET 529 Prepaid Tuition Plan and WA529 Invest Education Savings Plan.   Jenn lives in the beautiful Pacific Northwest and enjoys kayaking, exploring beaches, and spending time with family. She is passionate about K-12 education and encourages students (and adults) to pursue higher education. Recently, she returned to college and completed her bachelor’s degree at the same time as her two young adult children earned theirs. It’s never too late to pursue your higher education goals!

By David Bell, Senior Vice President, Vestwell

December 2, 2025 republished from 2024

In just a few weeks, we’ll be preparing to gather with friends and family to celebrate the end of another year with our various traditions – a favorite family recipe, matching pajamas, a heirloom decoration, and specially selected gifts wrapped with care. Promotions have been running since we turned off the lights on Halloween night – but what if you could wrap a gift with (almost) endless possibilities this year? A gift that could be imagined and re-imagined, a gift that could potentially be worth even more than your investment this year. What if this year, you started the tradition of supporting your loved ones’ future dreams by making a gift to their 529 account on Giving Tuesday?

When you gift to a 529 account, you provide several gifts in one:

A gift that could grow over time: Contributions of any size can add up over the years and have the potential for growth while invested. A new fun family tradition might be a family matching fund. Each family member can contribute a small amount of $25 to reach a target goal toward a new semester, tuition deadline, or more by the end of the year.

A gift of flexibility: Your loved one can choose which qualified distribution expense is best for them when they head off to school – tuition, books and supplies, room and board, and more. 529 plans can also support other aspirations like trade schools, apprenticeships, and fellowships.

A gift that wins awards: For the past three years, 529 Plans were selected as Good Housekeeping’s Best Parenting Awards.

This holiday season, consider giving a gift full of possibilities by contributing to a loved one’s 529 account – or better yet, set up recurring contributions to help them achieve their dreams. Ask your family and friends to share their 529 gifting information or see what gifting options your home state 529 program offers by visiting CSPN’s Find My State’s Plan tool.

About the Author

David Bell is Senior Vice President at Vestwell, leading client relationships for 529 and ABLE programs. David has a long background in Financial Education and State Savings Programs.

Thanksgiving is my favorite holiday because the star of the show is gratitude. Gratitude helps us focus on the essentials, like family, friends, colleagues, experiences, and the community and place where we work and live. (photo credit: Lael Oldmixon)

I reside and work in Alaska, a place of extremes. It’s dark and (very) cold in the winter and light and warm in the summer. These polar swings have taught me to be grateful for moments like the amazing aurora dancing on dark winter nights and for gifts like the abundance of autumnal blueberries and cranberries on the tail end of summer. Homegrown foods will grace our table at Thanksgiving in the form of pie and root vegetables, reminding us of midnight sun gardening during our longest days of the year. The extremes offer bounty and beauty, and I am grateful for that. 

In my career, I’m grateful to inspire and influence families to save for a loved one’s future education. According to the most recent 529 Insider’s Report, “17.4 million accounts hold $588 billion in assets in 529 savings and prepaid plans.” As my 529 colleagues and I seek ways to help individuals access, afford, and attain their academic aspirations, 529 education savings plans continue to grow and help even more families.  

As one of those 17.4 million account holders, I appreciate the ability to set aside a small amount each month to help reduce future debt my kids may incur as they pursue their education and training past high school. My children wish we’d spend more on technology, popular toys, and trendy clothes, but education savings is the gift they’ll never outgrow and one that keeps on giving. It’s not flashy, but they will appreciate the thoughtful gift of education when they are ready to take their first withdrawal. 

I’m also thankful for the community that supports our savings goals. My employer’s commitment to education provides support by offering a systematic way to save from a paycheck into a 529 account. The simple direct deposit option has resulted in at least 26 additional contributions annually to my children’s 529 accounts. Extended family members have also demonstrated a dedication to education with contributions to celebrate birthdays and other milestones. It powerfully conveys that we are not alone on our savings journey. 

For these reasons and many more not mentioned in this blog, I look forward to this holiday season with a grateful heart. We will have a table filled with delicious treats. We will appreciate our Alaska community and focus on the star of the season, gratitude. (photo credit: Lael Oldmixon)

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.

Trisha Good, Executive Director, Ohio Tuition Trust Authority

You’ve prepared for your children’s future by saving in a 529 plan for their education after high school. Now your child is considering different options after their graduation, and some may not include college. Don’t worry about your 529 account. You have many options for use of your savings.

Not just for four-year programs

First, keep in mind that 529 plans can be used at a wide variety of institutions. Not only can you use your 529 savings at four-year colleges and universities, but also at two-year community colleges, trade or vocational schools, apprenticeships approved by the U.S. Labor Department, and certificate or credential programs nationwide that accepts federal financial aid.

Hold on to the 529 plan

There is no deadline for when you must use the 529 account. So, if your child decides not to head to college right after their high school graduation, your 529 will be there when they are ready to start. Let’s say they want to use a gap year to explore different careers or work to earn money to pay for some college costs. Once they’re ready to start their higher education, you can make the tax-free withdrawals from your 529 account.

Transfer to a member of the family

What if your child decides that they will not pursue a education after high school so they won’t be using their 529 account? You still have options. You can transfer the account to another beneficiary. The new 529 beneficiary must be an eligible member of the family to your child. Since there are no time limits for using 529 plans, you could also hold onto the already established Ohio 529 account for your future grandchildren’s future college costs.

Pay for sibling’s qualified student loans

Does your child have siblings who went to college and have some student loans? 529 account owners can take a tax-free 529 withdrawal to pay principal and interest on qualified education loans for the original beneficiary of your 529 account as well as their siblings. The loan repayment provisions apply to repayments up to $10,000 per individual which is a lifetime amount. So, if one of your children won’t be using their 529 account, you can use it to pay off your other children’s qualified student loans.

Start a Roth IRA

Another 529 tax-free distribution allows any unused 529 funds to roll over to a Roth IRA for the same 529 beneficiary without incurring any penalty on the earnings. This way, you can use their higher education savings to give them a big jump-start on their retirement savings.

There are specific requirements to use this qualified distribution. First, a 529 account must be open for the beneficiary for 15 years. Second, the Roth IRA must be for the same beneficiary of the 529. Third, your contributions—also known as the principal—must have been in your Ohio 529 account for at least five years before the Roth IRA rollover. Fourth, you can only roll over 529 funds up to the yearly Roth IRA contribution limit. Fifth, the lifetime maximum 529 amount allowed for the Roth IRA rollover is $35,000. Before you elect to do a Roth IRA rollover, talk with your financial advisor or tax consultant.

Military academy exception

Does your child not need the funds saved in the 529 account because they will be attending an U.S. military academy? If so, then you can make a non-qualified withdrawal from their 529 account up to the estimated cost of attending the military academy without incurring the 10% federal tax penalty. The earning portion only of the withdrawal will be subject to federal, state, and local taxes.

Expenses for special-needs children and ABLE rollover

If your child may not head off for a higher education due to a medical or disability diagnosis, your 529 plan can still support them. Here are three options.

First, 529 plans cover certain expenses for a special needs students. The IRS Publication 970 “Tax Benefits for Education,” describes this as “expenses for special needs services needed by a special needs beneficiary must be incurred in connection with enrollment or attendance at an eligible postsecondary school.” Therefore, if your child wants to go to college, then your 529 plan can also cover the additional services needed for their higher education.

Second, you can make a non-qualified withdrawal from the college savings plan based on your child’s disability as long it meets the IRS’ specific definition found on page 53 of the IRS Publication 970. It states, “A person is considered to be disabled if he or she shows proof that he or she can’t do any substantial gainful activity because of his or her physical or mental condition. A physician must determine that his or her condition can be expected to result in death or to be of long-continued and indefinite duration.” You can request a withdrawal, and 10% federal tax penalty will not be assessed. The earnings-only portion of the withdrawal will be subject to federal, state, and local taxes.

Third, 529 rollovers to an ABLE (Achieving a Better Life Experience) account are allowed without any penalty, as long as the account is for the same child or another member of your family. IRS Publication 907 “Tax Highlights for Persons With Disabilities,” further describes these changes, including the current total annual contribution limit of $19,000.

Non-qualified withdrawal

The final way you can use your 529 account is with a non-qualified withdrawal. This means that the earnings-only portion of the withdrawal will be taxed on the federal, state, and local level. There will also be a 10% federal tax penalty assessed for withdrawing money from the 529 plan for costs that aren’t considered qualified higher education expenses. As the 529 account owner, you can direct the non-qualified withdrawal to your child who is the 529 beneficiary. Before you elect to make a non-qualified withdrawal, first talk with your financial advisor or tax consultant to evaluate your options.

It is important to note that some states don’t consider all of these options qualified for state tax purposes so please talk with your financial or tax advisor before withdrawing or rolling over funds from your account.

About the author: 

Trisha Good is the executive director of Ohio Tuition Trust Authority. Since 1989, Ohio Tuition Trust Authority has sponsored and administered Ohio 529 CollegeAdvantage. Ohio’s 529 Plan oversees nearly 683,000 accounts and over $20.23 billion in assets as of September 30, 2025. Visit CollegeAdvantage.com or call 1-800-AFFORD-IT (233-6734) for more information.

Jackie James, Director, TIAA-CREF Tuition Financing, Inc. (TFI)
Program Marketing

As someone who grew up in a military family, I have seen firsthand how military education benefits can transform lives across generations. Both of my grandfathers served our country. My dad retired as a Brigadier General from the US Air Force and the Air National Guard, and my brother is currently serving. Through their experiences, I’ve learned that veterans earn well-deserved educational benefits with the GI Bill. However, many do not realize how combining their GI Bill benefits with 529 college savings plans can create a powerful strategy for maximizing educational opportunities.

The GI Bill Foundation I Grew Up Understanding

Growing up, I watched my dad navigate his military education benefits and learned how the Post-9/11 GI Bill provides funding for tuition and a monthly stipend for other expenses such as housing, books and supplies. ¹ These benefits can be used for undergraduate degrees, graduate programs, vocational training, and certification programs. Although there are several different GI Bills, what makes the Post-9/11 GI Bill particularly valuable, and why my dad decided to use it, is its transferability feature – something my mom and dad discussed extensively as they considered how to best support their children’s educational goals.

My parents made the decision to transfer his GI Bill benefits to cover my and my brothers’ higher education expenses. Two of us attended an in-person 4-year college, while one pursued flight training and earned an online degree from a 4-year college. Thanks to his military benefits and his forward-thinking financial skills, we were all able to graduate with no debt – a tremendous gift that has shaped our financial futures.

The Post-9/11 GI Bill provides 36 months of education benefits – enough to cover a typical four-year degree when used efficiently. However, this creates an important planning consideration for military families, especially those with multiple children who could benefit from these educational resources. Once a veteran transfers or uses any portion of their 36-month benefit, those months are permanently expended, whether used by the veteran themselves or transferred to a spouse or child.¹

This means families with multiple potential beneficiaries must make strategic decisions about how to allocate this valuable but limited resource. When GI Bill benefits are exhausted – whether after 36 months or when split among family members – any remaining educational expenses must be covered through savings, investments, personal funds, loans, or other financial aid.¹ 

This is precisely where 529 college savings plans can become invaluable, providing a reliable funding source to bridge gaps when GI Bill benefits run out or to fund education for additional family members who may not receive transferred benefits.

How 529 Plans Can Enhance Military Benefits

Through my family’s planning process, I learned that a 529 plan can serve as the perfect partner to GI Bill benefits. These tax-advantaged college savings accounts allow families to save and invest for qualified education expenses, with earnings growing tax-deferred at both the federal and state levels, and withdrawals remain tax-free when used for qualified expenses.

529 plans can offer several strategic advantages.

First, they can cover expenses that exceed the GI Bill limits, such as the difference between private school tuition and the maximum benefit amount.

Second, 529 funds can pay for expenses beyond the 36-month allotment, helping families pay for multiple beneficiaries who want to further their education.²

Maximizing Both Benefits

Planning allows veterans to optimize both resources, something I’ve observed across three generations of military service in my family. Consider using GI Bill benefits for the most expensive educational goals – perhaps a child’s four-year degree at a state university where the benefit provides maximum coverage. Meanwhile, 529 plans can supplement these benefits or fund the education of additional family members.

Alternatively, since the GI Bill benefits do have a limit, consider using each month’s allotment strategically: apply the GI Bill toward a beneficiary pursuing more expensive degrees, while utilizing 529 plan savings to cover lower-cost options for other beneficiaries, such as technical programs, professional certifications, or apprenticeships.³

The recent SECURE Act 2.0 can add even more flexibility to 529 plans, allowing unused funds to be rolled over to a Roth IRA under certain conditions, providing a retirement savings alternative for military families who prioritize college savings.⁴

State-Specific Benefits

Many state 529 plans offer additional benefits for families. Some states provide matching contributions or tax deductions/credits for contributions made into a 529 plan. Prior to investing, Veterans should check with their current state of residence to learn if it offers tax or other benefits, such as financial aid, scholarship funds, or protection from creditors, for investing in its own 529 plan.

Getting Started: Advice from a Military Family

Veterans interested in maximizing their educational benefits should start by understanding their specific GI Bill entitlements and transfer options. Then, research a 529 plan and how different plans compare. Many financial advisors specialize in military benefits and can help create comprehensive strategies that optimize both the GI Bill and 529 plan advantages.

The combination of earned military benefits and strategic 529 plan savings can create powerful opportunities for veterans and their families. Having witnessed this across generations in my own family, I know that understanding how these programs work together can help ensure that military families make the most of every educational dollar available to them.

To all the veterans and active service members reading this – thank you for your service and may these educational benefits serve as a pathway to bright futures for you and your families.

About the Author

Jackie James has worked in the financial services and 529 industry since 2018 and currently serves as a Director at TIAA-CREF Tuition Financing, Inc. (TFI), a wholly-owned subsidiary of TIAA. TFI operates as the 529 Plan Program Manager for the States of California, Georgia, Illinois, Kansas, Michigan, Minnesota, Oklahoma, Washington, and Wisconsin.

In her role, Jackie has successfully managed strategic programs and initiatives that consistently drive business growth, with expertise in developing and executing marketing plans for the Edvest 529 College Savings Plan and Bright Start 529 College Savings Plan. She holds two Bachelor’s degrees in Marketing and Entrepreneurship from the University of South Carolina, and a Master’s degree in Project Management from the University of Maryland Global Campus. Jackie resides in the Greater Asheville area with her husband and two cats, and is passionate about youth mental health, volunteering as a Volunteer for the Guide Dog Foundation for the Blind and currently serving as the Sustainability Action Membership Co-Lead at TIAA.

*Information up to date as of November 1, 2025, GI Bill policies may change in the future. 

¹ U.S. Department of Veterans Affairs, “Post-9/11 GI Bill” (https://www.va.gov/education/about-gi-bill-benefits/post-9-11/)

²Internal Revenue Service, “529 Plans: Questions and Answers” (https://www.irs.gov/newsroom/529-plans-questions-and-answers)

³Apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act.

⁴SECURE Act 2.0, Public Law 117-328 (2022)

Please read the Plan Description on www.tiaa.org/529 carefully prior to investing, for details on its investment objectives, risks, charges, and expenses, and whether your home state offers tax or other benefits such as financial aid, scholarship funds, or protection from creditors for investing in its own 529 plan. More information about municipal fund securities is available in the issuer’s Plan Description. Investments in the plan are neither insured nor guaranteed and there is the risk of investment loss. Consult your legal or tax professional for tax advice. TIAA-CREF Tuition Financing, Inc. (TFI) is the Plan Manager for several state 529 plans, and TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, is the distributor and underwriter for those plans. 

Funds rolled over to a Roth IRA can be withdrawn free from federal and Wisconsin income tax.  If you are not a Wisconsin taxpayer, these withdrawals may include recapture of tax deduction and state income tax.  Account Owners and Beneficiaries should consult with a qualified tax professional before rolling over funds from their 529 plan to contribute to a Roth IRA. 

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