There are few moments in life as exciting, rewarding, and emotional as sending your first child off to college. That moment has finally arrived for me.
I’m still trying to understand how my tiny baby girl has grown into an accomplished, brilliant, and fascinating young woman ready to begin the adventure of a lifetime. While I couldn’t be prouder of Emma, I’d be lying if I said I wasn’t feeling emotional about it all.
As a first-time college mom, I thought I was prepared. I opened a 529 account when Emma was a baby, contributed consistently over the years, and encouraged family and friends to give the gift of education instead of more toys and gadgets. I thought I had done everything right, and I did.
What I didn’t realize was that financial preparation is only half the battle.
Like many families, we navigated applications, essays, transcripts, testing requirements, campus visits, and the pressure of decision day. But our experience was even more complex because Emma is pursuing a Bachelor of Fine Arts in Acting. In addition to the traditional application process, she faced auditions, callbacks, and performance evaluations. Every step brought a mix of excitement, uncertainty, and anticipation.
Then came the decisions.
Do you commit to a school right away? Do you remain on a waitlist and hope for an opening? How do you balance practical considerations with your child’s dreams? Should your child attend a traditional college, a trade school, an apprenticeship program, or pursue an online education? These are questions many families face, and they can be surprisingly stressful.
Then came Move-In Day planning.
When I went to college, moving into a dorm was easy. You packed some clothes, a few school supplies, toiletries, and a set of twin sheets. Then you showed up.
Things. Have. Changed.
Today’s college move-in process requires a level of planning that rivals a military operation. There are storage systems, room décor, mini appliances, charging stations, and enough organizational products to stock a small retail store. And apparently, no dorm room can function without approximately 437 Command Strips.
But more than the shopping lists and move-in logistics, I wasn’t prepared for the emotions.
Emma will only be a four-hour drive away, but the reality of becoming an empty nester is still hitting me harder than I expected. There are moments of pride, excitement, worry, sadness, and gratitude, sometimes all before breakfast.
As I work through those emotions, there’s one thing I don’t have to worry about: how we’ll pay for college.
Because we started saving early through a 529 account, we have the resources we need to support Emma’s educational journey. I can’t imagine managing all the emotions and logistics of sending a child to college while also facing significant financial stress.
The truth is that our savings didn’t come from larger sacrifices alone. They also came from small, consistent choices made over many years. Sometimes it meant skipping the daily coffee-shop run. Sometimes it meant dining out a little less often. Those contributions, combined with gifts from family and friends, added up and created opportunities for Emma’s future.
If your children are still young, consider opening a 529 account now. Even modest contributions can make a meaningful difference over time. And if your child is already nearing college, remember that educational expenses don’t end after the first semester. It’s never too late to start saving with a 529 account.
But don’t just prepare financially. Prepare emotionally, too.
Whether your child is heading across the country, a few hours away like Emma, or commuting from home, this transition is a major milestone for the entire family.
To my fellow parents of incoming freshmen: I’m right there with you. We’ve got this. Keep planning for the future. Keep cheering your children on. And when Move-In day arrives, don’t forget the snacks, the patience, and a healthy supply of Command Strips.
Enjoy every moment. The years really do go by faster than we ever imagined.
About the author:
Mary Anne Busse is the Managing Director of Great Disclosure. She has been advising state government 529 and ABLE Plan administrators since 2000. Mary Anne is an active member of The 529 Network as the Co-Chair of its Legal and State Affairs Committee, and serves on its Communications Committee, Blog Subcommittee, Conference Planning Committees, and several other subcommittees. She is also an active member of the ABLE Savings Plans Network. She recently completed serving her fourth term on the Municipal Securities Rulemaking Board’s Municipal Fund Securities Advisory Group.
This past Independence Day, I found myself adding something unexpected to our lineup of family time, food and fireworks: opening a new savings account for my son. I enrolled him in a 530A account, commonly known as a Trump Account, a newly created savings option established by the federal government to help children build long-term financial security.
I wasn’t alone. Families across the country are doing the same. Since the new savings program was announced, it has generated significant interest. The July launch gave many families, including mine, an opportunity to take a closer look.
Why I Opened a 530A Account
My son is in his elementary school years, which means he isn’t eligible for the one-time $1,000 federal seed deposit available to eligible children born between 2025 and 2028. But, like many children age 10 and under, he qualifies for the $250 contribution funded by the Dell family. That incentive made opening the 530A account an easy decision. And for families who qualify for employer‑funded or philanthropic contributions, those extra boosts can make opening a 530A account feel especially helpful as they get started.
I had already submitted Form 4547 through the IRS website, so when I received the notification, I downloaded the program’s app and made my first 530A contribution. The process was straightforward, and I especially liked the option to invite friends and family to contribute.
Turning Saving into Learning
|The biggest surprise wasn’t opening the account. It was the conversations that followed.
One of my favorite parts was sitting down with my son to explore the app’s calculator. We tried out different contribution amounts and watched how they could grow through compound interest.
We also talked about the choices we make with money. A dollar saved today might not feel as exciting as something we can buy right away, but seeing how small decisions add up helped make saving feel more real to him.
The experience reminded me that some of the best financial lessons happen naturally. Kids don’t learn about saving from a single conversation. They learn through questions, everyday moments, and chances to see how their choices connect to their goals. For us, opening the 530A account became one of those moments.
How a 530A Account Can Fit Alongside a 529
Opening a 530A account doesn’t change our family’s education savings strategy.
We’ve been contributing to my son’s 529 account through automatic monthly deposits, and we intend to continue. The flexibility of a 529 plan gives us confidence that we’ll be prepared wherever his education takes him.
This new account serves a different purpose. A 529 plan helps us save for qualified education expenses, while a 530A account can eventually support retirement savings. When my son turns 18, ownership of the 530A account will transfer to him, giving him a valuable foundation for the years ahead. Together, these accounts give our family more ways to invest in his future.
More Tools for Families
As someone who works for a 529 savings program, I believe education savings remains an important part of a family’s overall financial plan. At the same time, I welcome new financial tools that encourage families to save.
For our family, opening a 530A account wasn’t about replacing our 529 plan. It was about recognizing another opportunity to save and starting a conversation with our son about money, planning, and the choices that shape his future.
My biggest takeaway is that families benefit when saving feels accessible. Whether through a 529 plan, a 530A account, or another savings vehicle, more opportunities to save can also create more opportunities to help children build financial confidence.
About the author: Sarah Pennington is Program Director for Virginia’s education savings programs at Commonwealth Savers, overseeing the direct-sold Invest529 program and the advisor-sold CollegeAmerica program. She is passionate about helping families plan for the future and making education savings easier to understand. A proud Virginia Tech Hokie with a master’s degree from West Virginia University, Sarah spends her days talking about 529 plans and her free time making memories with her family.
Fee payment deadlines have a tricky way of sneaking up on you. Every semester, 529 plan service centers receive frantic calls from parents and students trying to expedite a withdrawal from their 529 account. Granted, while this last-minute rush is stressful, it’s still far better than not having any savings to draw from.
This situation is completely avoidable. While transferring funds from a 529 account to a student’s university account isn’t an instant process, the transfer can happen relatively quickly in most cases. To keep your semester on track, please heed this guidance when you need to take a withdrawal this fall!
Generally, there are four ways to request a withdrawal from a 529 plan, and they can usually be initiated online or by phone. (Note: Your plan may offer additional options. Also note: It is generally advisable for tax purposes to select the student as the payee.)
– Send a check to your address of record: The funds are mailed directly to you, and you pay the school.
– Transfer the funds to your bank account on file: Funds are sent electronically to your bank.
– Send a check to the school’s accounts payable address: The 529 plan mails a check directly to the school. Important: You’ll need to provide the 529 plan with the school’s name and address, the student’s name and student’s ID.
– Electronic transfer (ACH) to the school: Funds are sent directly to the school electronically. Again, ensure the name of the school and the student ID are attached to this request.
As a rule of thumb, request your withdrawal at least 10 business days before the fee payment deadline. However, you should add extra time to your buffer if:
– A check is being mailed to you or the school.
– You are linking a new bank account to your 529 plan (in some cases, safety holds can prevent withdrawals for up to 15 days after linking).
Pro Tip: Consider sending funds directly to the school via electronic options like ACH or other services offered by your plan. While some plans charge a small fee for faster electronic service or overnight express check shipping, it may be worth it to avoid late charges.
What Happens if You Miss the Deadline?
The consequences of missing a fee payment deadline can range from costly late fees to being dropped from your classes for non-payment. Trust me, there is nothing fun about paying extra penalties or losing your seat in a required course!
If you realize you won’t make the deadline:
1. Contact the school immediately: Call the business office or accounts payable department and ask if they offer a temporary deferred payment plan.
2. Use a backup payment method: Pay the amount out of pocket from a personal bank account or credit card to bridge the gap (just be aware that universities often charge a convenience fee for credit cards), then reimburse yourself from the 529 later.
The takeaway: Save the date, schedule your withdrawal at least 10 business days in advance, and follow up with the university to confirm the funds were successfully applied to the account.
Pay your fees on time so your student can get down to the real business of being a student!
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.
As I travel around my home state of South Carolina, I see families preparing to celebrate the 250th anniversary of the signing of the Declaration of Independence. Their many patriotic displays show they understand that the ideals put forth and adopted on July 4, 1776, are foundational to the individual liberties we enjoy today. As Americans, we appreciate freedom in every aspect of our daily lives and value the control it gives us.
Even families saving for their children’s future education want the freedom to choose how they use their money. That’s why many families save with a 529 plan. Today’s 529 plans offer account owners who are saving for education more flexibility than ever before. Below are some of the key freedoms that 529 account owners and their beneficiaries can enjoy.
FREEdom in how it’s used
You probably know that 529 funds may be used for tuition, but they’re also available to be used for many more educational expenses. Whether your child will be living in an on-campus student dorm or in an off-campus apartment, you’re able to use 529 funds to pay for qualified housing as well as student meals. In addition, 529 money may be used to pay for books, software, computers, supplies, and any equipment required to complete coursework.
Tax-FREE
Few investment vehicles allow you to invest money and grow it tax-free, but 529 plans do. Earnings from your contributions are tax-free and compounded. Through compounding, any gains your account earns have the opportunity to make more gains – all tax-free.
And when your child is ready to use their 529 funds, you’re allowed to withdraw the money tax-free, as long as the funds are being used to pay for qualified education expenses.
FREEdom in where it’s used
You can’t predict what your child’s dreams and goals will be, so 529 plans provide the flexibility to use your funds at a variety of educational institutions. You may use funds at any accredited two-year or four-year public or private college, university, technical college, trade school, graduate school program, professional program, or apprenticeship across the United States and in many foreign countries. You may also use funds for professional licensing fees or certificates. You may even use 529 money to pay for up to $20,000 per year of qualified expenses at a public, private, or religious K-12 school.
529 FREEdom equals control
Your 529 funds are always your money, and you have options that keep you in control of any leftover funds in your account.
Transfer the funds. If you have unused 529 funds, you can transfer them to another family member or use them yourself if you plan to continue your education. You may also transfer 529 funds to use for a grandchild’s education.
Pay student loans. You may use up to $10,000 of leftover 529 funds to pay off the student loan debt of the beneficiary, their sibling, or another family member. Perhaps one of your children attended a more affordable school, but your other child chose to pursue an advanced degree that required a student loan. This option could be the perfect solution.
Rollover the funds. You can use your 529 funds for the beneficiary’s retirement. If your 529 account has been open for at least 15 years and the funds have been invested in the account for at least five years, you may be able to roll over up to a maximum lifetime limit of $35,000 to a Roth IRA that is owned by the designated beneficiary.
Withdraw the funds. You may withdraw your money at any time, even for non-qualified educational expenses. Withdrawals for non-qualified expenses are subject to a 10% federal penalty as well as income tax, but only on the earnings portion of the withdrawal – not on the money you originally contributed. If your child receives a scholarship, you may withdraw up to the amount of the scholarship without penalty and pay taxes only on your earnings. We encourage you to consult a tax professional for more information about non-qualified withdrawals and any applicable penalty waivers.
FREEdom from student loan debtAs a State Treasurer, I know how important it is for families to understand that they have the power to help their children avoid significant student loan debt. 529 plans are designed to make saving for education as simple as possible so that you can help put your child on the path toward a successful, unburdened financial future. By opening a 529 account early and contributing as often as possible, you increase your account’s earning potential to fuel your child’s education journey.
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.
