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?
Explore 529 Plan Options
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
2026 529 Plan Contribution & Gift-Tax Limits
529 plans do not have one federal annual contribution limit. However, contributions can have federal gift-tax consequences. The figures below show the 2026 annual gift-tax exclusion and the special five-year election available for 529 plan contributions.
| 2026 529 Plan Figure | Amount | What It Means |
|---|---|---|
| Annual Gift-Tax Exclusion — One Donor | $19,000 | Per beneficiary in 2026 |
| Annual Gift-Tax Exclusion — Two Spouses | $38,000 | Potential combined exclusion when gift-splitting rules apply |
| 5-Year 529 Election — One Donor | $95,000 | $19,000 × 5 years |
| 5-Year 529 Election — Two Spouses | $190,000 | Potential combined amount when applicable gift-splitting rules are used |
| Single Federal Annual Contribution Limit: | None | Individual 529 programs set their own overall contribution limits |
Data year:
2026
Update frequency:
Annually
Source:
Internal Revenue Service (IRS)
—
View official IRS 529 information
529 plans do not have a single federal annual contribution limit. Individual plans establish their own aggregate limits. Contributions above the annual gift-tax exclusion may require gift-tax reporting, and the special five-year election generally requires Form 709.
2026 Qualified 529 Expenses & Federal Limits
529 plan funds can be used tax-free for a range of qualified education expenses. Some categories have specific federal limits, while others generally depend on actual qualified education costs.
| Qualified Use | Federal Limit / Rule | Key Rule |
|---|---|---|
| College / University Tuition & Fees | Qualified expenses | Generally eligible when required for enrollment or attendance at an eligible institution |
| Books, Supplies & Required Equipment | Qualified expenses | Generally eligible when required for enrollment or attendance |
| Room & Board | Subject to IRS rules | Generally available for eligible students enrolled at least half-time |
| K–12 Qualified Education Expenses | $20,000 / year | Per beneficiary across all 529 plans beginning in 2026 |
| Registered Apprenticeship Expenses | Qualified expenses | Includes certain required fees, books, supplies and equipment |
| Student Loan Repayment | $10,000 lifetime | Lifetime limit per individual |
| 529-to-Roth IRA Rollover | $35,000 lifetime | Subject to annual Roth IRA limits and additional federal requirements |
Data year:
2026
Update frequency:
As federal rules change
Source:
Internal Revenue Service (IRS)
—
View official IRS 529 rules
Qualified-expense rules vary by expense type and individual circumstances. State tax treatment may also differ from federal rules. 529-to-Roth IRA rollovers are subject to additional account-age, contribution-history and annual IRA-limit requirements.
What Can Affect 529 Plan Growth?
Who May Consider a 529 Plan?
Benefits and Things to Consider
529 Plans vs. Other Savings Options
Common 529 Plan Questions
Related Investment Options
Ready to Explore 529 Plans?
Compare education savings options, fees and investment choices to find a plan that may fit your family’s goals.