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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.

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 David Bell, SVP, Program Management, Vestwell

Saving for education and career training can feel daunting—especially at a time when the cost of higher education has risen more than 140% over the past 20 years. Believe me, I just put one daughter through college and have another who will be looking for career training soon. 

People want to plan ahead and invest in their future, but they need tools that make saving easier, more approachable, and more accessible. That’s where 529 plans can make a real difference, especially if you know some tips on how to put them to best work for you.

While 529 plans are often associated with college savings, they’re far more versatile than many people realize. They can support a wide range of educational and career-training expenses. Whether you’re exploring a new 529 or looking for ways to grow your savings, here are some practical ways to make the most of a 529 plan.

1. Understanding the Built-In Tax Advantages

One of the most powerful features of a 529 plan is how it’s structured, particularly when it comes to tax benefits. Here’s what to keep in mind:

2. Take Advantage of Plan-Specific Features

Not all 529 plans are the same. Many offer features designed to make saving easier, more automatic, or more engaging. Taking a closer look at the tools available through a specific plan can uncover simple ways to build savings (while making it more interesting!).

Here are a few examples of program-specific initiatives that help turn everyday moments into savings progress:

3. Using Life Events to Provide a Little Extra Savings

Life events (both big and small!) often create natural moments to revisit a household budget. Whether it’s a recurring expense ending or a one-time financial boost, these transitions can present opportunities to redirect funds toward long-term goals.

When a major expense ends, such as the cost of diapers or full-time childcare, it can free up room in a monthly budget. Redirecting even a portion of that former expense into a 529 plan can make a meaningful difference over time.

Tax season can also be a powerful moment to move savings forward. If you receive a tax refund, consider directing some or all of it into a 529 account. It’s a simple way to turn a one-time refund into long-term progress toward education or training goals.

For eligible low- to moderate-income workers, credits like the Earned Income Tax Credit (EITC) can also provide an opportunity to boost savings. The EITC is a refundable tax credit designed to support working individuals and families by increasing their tax refund. Using a portion of that refund to fund a 529 account can help families build momentum. 

4. Make Saving Automatic

Consistency matters most when it comes to saving—and most Americans agree. In fact, 83% agree that the most effective way to build savings is to do so automatically, transferring funds regularly from a paycheck or checking account directly into savings.

Many 529 plans allow you to set up recurring contributions or payroll direct deposit, making saving regular and predictable. Some programs even offer automatic annual increases, so contributions grow gradually as income changes, without requiring ongoing adjustments. Automation removes friction and helps turn saving into a habit, rather than a decision you have to revisit regularly.

5. Invite Others to Help Build Your Savings

Education savings don’t have to be a solo effort. Is there a better way to cover your children’s future education than having others help contribute towards it? I don’t think so!

Family members and friends often want to support a loved one’s future, especially around birthdays, holidays, or other milestones. A contribution to a 529 plan can be a lasting gift that grows alongside the child and supports future education or career training.

Many 529 programs make this easy by offering gifting pages, which are secure, shareable links that allow loved ones to contribute directly to an account online. Gifting helps families turn special occasions into long-term savings, creating a meaningful way to be part of their future.

Saving for What Comes Next

529 accounts can be a very effective way to prepare for future education and career opportunities. Even small, consistent steps can add up over time and help open doors to opportunities down the road. 

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.  

 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

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.

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.

My grandfather, Joseph Beaudoin, Air Force

The GI Bill Foundation I Grew Up Understanding

My late grandfather, Bill James, Navy

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.

My Mom and Dad celebrating my Dad’s retirement from the Air National Guard after 35+ years of service

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. 

Neither TIAA-CREF Tuition Financing, Inc., nor its affiliates, are responsible for the content found on any external website links contained herein. 4871409 

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

Over recent decades, there has been no shortage of ink spilled in the debate over the value of higher education. You’ve likely heard the arguments on either side; it’s possible you have a strong opinion yourself. But for today, let’s get back to the basics and explore the underpinnings of why we think college is worth it. Specifically, what does a college education even bring to the table?

As it turns out, a lot.

To start, individuals with degrees are more likely to enjoy greater income and greater economic stability. Across the country, college degrees have been correlated with higher earnings over a career, according to a brief from the University of Utah.

Pew Research reported last year that although workers without a college degree have in fact seen an increase in earnings over recent years, so have those with degrees — meaning the relative benefits are just about as pronounced as in the past.

The financial upside of a degree may have something to do with how rich the college experience can be for making social and professional connections.

College is a unique time in a student’s life, offering rare and precious opportunities to develop relationships, form unique memories, and lay the groundwork for their future career. It’s a context with unparalleled opportunities for internships and research opportunities, and the professional connections found at school can be essential to laying the foundation for a long and happy vocation.

A degree is also connected to having a more stable career in general. Using U.S. Census data, the Public Policy Institute of California found that graduates are more likely to be working or looking for work and are more likely to be employed full-time.

Additionally, these full-time jobs can come with oft-vital benefits like health insurance, vacation, retirement, and more. Through it all, those with college degrees are also more likely to weather recessions a little better, with certain industries usually being hit harder than others.

However, the benefits of a degree don’t stop with your career. While the more straightforward point of a degree is to find placement on a rewarding and well-paid occupational path, it can also go far in holistically improving you in any number of ways.

Reports have shown that degree holders have higher rates of both physical and mental health. According to the U.S. Bureau of Labor Statistics, they’re also more likely to marry and less likely to divorce. Additionally, citizens with more post-high school education are more likely to become involved in their community, both as volunteers and voters.

While these quality-of-life benefits may be more correlation than causation, there’s little doubt that these results are closely connected to things like increased benefits and career stability mentioned earlier.

Of course, this is just a bird’s-eye view of the many factors to consider when weighing a college degree for yourself or a loved one. Luckily, saving for higher education is more of a marathon than a sprint, meaning you’ve got plenty of time to dive into more research on your own.

In the meantime, though, it does seem that the body of evidence supporting the value of a degree is immense. It’s a big decision, and one that can end up affecting nearly every sphere of a person’s life for the better.  

Even with all this value, however, the concept of paying for a college degree at modern-day prices can still seem daunting, which is why it’s more useful than ever to get a head start on saving for school as early as possible. Saving can help you or a loved one’s choice to seek a degree more informed by the benefits — and less so the barriers.

About the author:

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

The week of Oct. 20-24 is National Transfer Student Week, focusing on students who start their higher education at a community college, trade or vocational school, who then transfer to a four-year college to complete their bachelor degree. While continuing their education after high school, students can also take core classes at a lower cost and transfer those credits to a four-year college. It’s a smart way to save money on their education and still reach their goal. And a 529 plan can pay for the qualified costs at community colleges, trade schools, as well as colleges.

Community colleges and trade/vocational schools provide their students with a valuable education. Earning a degree or certificate from these institutions of higher education, it’s a great way to launch into a professional career.

If you look at the national average price of a credit hour, community college ones costs $150, while the average cost at a four-year public, in-state university is $406. If your child earns 10 credit hours at a community college on transferable core classes, the cost could be around $1,500. If your child took the same 10 credit hours of core classes at a four-year college or university, the average cost could be $4,060 or more. With this example, by taking the same required courses at a community college, you could still have $2,560 in your 529 account for future use.

Like saving in a 529 plan, the key is starting the transfer planning process as early as possible. If your student plans to start their academic studies at a community college to then complete it at a four-year program, let the community college’s academic advisor know before enrolling there. The counselor can guide your student to the four-year programs with which they have transfer agreements, and which courses are guaranteed to transfer and be applied to their bachelor’s degree. After your student has taken the core requirement classes and is ready to start the transfer process to the four-year program, they need to connect with their next school’s transfer office for guidance.

Another avenue for students to gain transfer credits is Prior Learning Assessments (PLA). Students can earn college credits by exam, like tests created by theCollege Level Examination Process or CLEP, and  through a portfolio that contains a student’s applicable education learning.

Taking core requirement courses at a lower-priced community college is a smart way to keep money in your 529 account future use at a four-year school. Do your research, use the school’s resources and staff, and you can make the transfer process work well for you and your 529 savings. 

If you’d like to learn more about saving for your child’s college or career training with a 529 plan, visit CSPN at collegesavings.org or search for your home state’s 529 program. 

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 more than 682,000 accounts and over $19.5 billion in assets as of June 30, 2025. Visit CollegeAdvantage.com or call 1-800-AFFORD-IT (233-6734) for more information.

By Cheryl Rapp, State of Wisconsin College Investment Program Finance Officer, Edvest 529

September 16, 2025

Each September brings a reminder to look ahead and plan for education because it’s College Savings Month. With the cost of higher education continuing to rise, having a clear savings plan in place is more important than ever. One of the most effective tools to help you prepare is a 529 college savings plan.

Understanding a 529 Plan

A 529 plan is a tax-advantaged account designed to help individuals save for education costs. Whether you’re saving for a child, a grandchild, or yourself, a 529 plan offers several advantages:

Think of College Savings Month as your yearly nudge to take action. The sooner you start saving, the more time your contributions have to potentially grow through the power of compounding, and the less you or your student may need to borrow later.

This is also the perfect time to check in on your savings habits:

Tips to Make the Most of College Savings Month:

  1. Open or review your 529 account – Now is a great time to start if you don’t have one. If you do, consider checking in on your investment strategy and goals.
  2. Set up automatic contributions – Regular contributions, even as little as $10 or $25 a month, can build momentum.
  3. Involve family and friends – Let loved ones know they can contribute to your child’s 529 account for birthdays or holidays.
  4. Explore your state’s plan benefits – Some plans offer promotions or incentives during College Savings Month.

College Savings Month is more than a reminder for future planning; it’s an opportunity to take real steps toward funding educational goals. Whether you’re opening your first account or adding to an existing one, a 529 plan can help you maximize your savings through tax advantages, low costs, and flexible use options. Your future self or your future graduate will thank you.

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.