A 529 plan lets you save and invest for college and other education expenses with tax advantages you can’t get from regular savings and investment accounts. Anyone—including parents and grandparents—can save for a child or other beneficiary of any age. Funds can be used for college costs, trade and vocational school expenses and even K-12 expenses that qualify.
A child’s future path is often unknown, but a 529 plan gives you flexibility to use the funds in a variety of ways that work for you and your beneficiary. The sooner you enroll, the greater the potential benefits.1
Save in almost any state’s 529 plan
Nearly all U.S. states and Washington, D.C., offer one or more 529 plans, which may be available either directly from the state or through financial institutions. You can invest in almost any state’s 529 plan regardless of where you live. However, some states offer certain benefits—such as state tax deductions—to residents who invest in their state’s 529 plan, so be sure to check the rules for your state.
Use the money at an eligible school anywhere
You can generally use the funds at any eligible college or university, community college, trade school or vocational training program in the United States or abroad. Money can also be used for eligible graduate, study abroad and gap-year programs. As of 2026, up to $20,000 per year may be used for K-12 expenses at eligible schools.
Qualified expenses include tuition, room and board, books and supplies, computers and more.
Receive tax benefits for qualified expenses
Contributions to a 529 plan are made with after-tax dollars, but may be deductible on your state taxes. Any earnings are tax-deferred while you save, and are free of federal income taxes—and possibly state taxes—when used for qualified expenses. The longer you save, the greater the benefit.
Nonqualified withdrawals are generally subject to ordinary income tax on the earnings only along with an additional 10% federal tax. State taxes would also be due on any contributions that were deducted from your state taxes.
Change the beneficiary or roll over unused money
If the original beneficiary does not need or use all of the money saved, you can change the beneficiary and give the remaining money to another qualified family member such as a sibling or grandchild.2 Up to $10,000 may be used for a beneficiary’s student loan repayment. You can also roll over up to $35,000 into a Roth IRA for the beneficiary if certain conditions are met.3
Contribute with no income restrictions and high limits
Anyone can save in a 529 plan regardless of income level. Contributions are no longer part of your taxable estate, and contributions up to $19,000 per year ($38,000 if married and filing jointly) qualify for the annual gift tax exclusion as of 2026. You can contribute up to five years of gifts at once ($95,000 for an individual and $190,000 if married and filing jointly) if you spread the gift evenly over five years. To avoid any gift tax consequences, no further gifts are allowed to the beneficiary during that five-year period.
Total account maximums are set by the states based on reasonably expected educational costs. Limits range from just over $200,000 to more than $600,000.
Choose the investment approach you prefer
You’ll have an array of investment options so you can design a strategy that’s right for you. Changes to your investment portfolio can only be made twice per year. Age-based, target enrollment funds are a common option, automatically adjusting to become more conservative as the beneficiary nears the age of enrollment.
Support
You’ll have access to Corebridge’s wide variety of planning and learning resources to help you take action for your future. This includes one-on-one help from a Corebridge financial professional.
