529 Plans

Save and Invest for Education

529 plans are tax-advantaged education savings accounts designed to help families save for qualified education expenses.

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What Is A Plan?

A 529 plan is a tax-advantaged savings plan designed to help pay for qualified education expenses.

Money contributed to a 529 plan can be invested in options such as mutual funds, age-based portfolios and other investment choices.

Earnings can grow tax-deferred, and qualified withdrawals are generally free from federal income tax when used for eligible education expenses.

Why Consider a 529 Plan?

Tax Advantages

Earnings can grow tax-deferred, and qualified withdrawals may be free from federal income tax.

Education Focus

Funds can be used for eligible education costs such as tuition, fees, books and certain other expenses.

Flexible Contributions

Family members and others may be able to contribute toward a student’s future education.

Explore 529 Plan Options

Education Savings Plans

Invest contributions in portfolios designed to help pay future qualified education expenses.

Explore Savings Plans

Prepaid Tuition Plans

Allow families to prepay certain future tuition costs at participating institutions.

Explore Prepaid Plans

Age-Based Portfolios

Automatically become more conservative as the beneficiary gets closer to college age.

Explore Age-Based Options

Static Portfolios

Maintain a selected investment allocation until the account owner chooses to change it.

Explore Static Portfolios

Individual Portfolios

Allow account owners to select from available investment choices based on their own strategy.

Explore Investment Options

State 529 Plans

Plans sponsored by individual states, which may offer different tax benefits, fees and investment options.

Compare State Plans

Compare Common 529 Plan Options

Feature	Education Savings	Prepaid Tuition	Age-Based Portfolio
Main Purpose	Save for education	Prepay tuition	Long-term education investing
Investment Choice	Yes	Limited	Managed automatically
Market Risk	Yes	Lower / Varies	Changes over time
Flexibility	Higher	More limited	Moderate
Common Use	Broad education expenses	Future tuition	Hands-off investing

529 Plan Fees and Costs

529 plans can have different fees depending on the state, investment option and plan structure.

Common costs may include:

Program management fees
Investment expenses
Account maintenance fees
Enrollment fees
Advisor fees
Underlying fund expenses
Out-of-state plan fees

Compare 529 Plan Costs

Sample 529 Comparison Table

Data updated: 2026

Plan Type	Minimum Contribution	Annual Fee	Investment Options	State Tax Benefit
Education Savings	$—	$—	Multiple	Varies
Prepaid Tuition	$—	$—	Limited	Varies
Age-Based	$—	$—	Managed	Varies
Static Portfolio	$—	$—	Multiple	Varies
Direct-Sold Plan	$—	$—	Multiple	Varies
Advisor-Sold Plan	$—	$—	Multiple	Varies

Disclaimer: 529 plan fees, investment options, tax benefits and eligibility rules vary by state and plan. Investment values can rise or fall, and tax treatment depends on how withdrawals are used.

What Can Affect 529 Plan Growth?

Investment Performance

Returns depend on the investments selected inside the plan.

Time Horizon

Starting earlier can provide more time for potential investment growth.

Contributions

Regular contributions can significantly affect the amount available for future education costs.

Fees

Plan and investment expenses reduce net returns over time.

Market Conditions

Investment values can fluctuate with financial markets.

Portfolio Selection

Age-based, static and other portfolios can have different risk and return characteristics.

Who May Consider a 529 Plan?

A 529 plan may be worth considering if you want to save and invest specifically for future education expenses.

Common Reasons

Saving for college
Planning for future tuition costs
Helping children or grandchildren
Tax-advantaged education saving
Investing over a long time horizon
Covering qualified education expenses
Building a dedicated education fund

Benefits and Things to Consider

Benefits

Tax-advantaged growth
Qualified tax-free withdrawals
High contribution limits on many plans
Flexible beneficiary options
Wide range of investment choices

Things to Consider

Non-qualified withdrawals may face taxes and penalties
Investment values can decline
State tax benefits vary
Fees differ between plans
Investment options may be limited to the plan menu

529 Plans vs. Other Savings Options

529 Plans

Tax-advantaged accounts designed specifically for qualified education expenses.

529 Plans

Custodial Accounts

Investment accounts established for a minor that can generally be used for broader purposes.

Compare Custodial Accounts

Savings Accounts

Provide simpler access to cash but generally do not offer the same education-specific tax benefits.

Compare Savings Account

Common 529 Plan Questions

Who can open a 529 plan?

What expenses can a 529 plan pay for?

Are 529 contributions tax deductible?

Can I change the beneficiary?

What happens if the child does not attend college?

Can 529 money be used for private school?

Can I use a 529 plan in another state?

Can I lose money in a 529 plan?

Related Investment Options

ETFs

Explore diversified funds that trade throughout the day on stock exchanges.

Explore ETFs

Mutual Funds

Explore professionally managed portfolios containing stocks, bonds and other investments.

Explore Mutual Funds

Stocks

Explore individual companies for growth and dividend opportunities.

Explore Stocks

CDs

Explore fixed-term deposit products for shorter-term savings goals

Explore CDs

Ready to Explore 529 Plans?

Compare education savings options, fees and investment choices to find a plan that may fit your family’s goals.

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