Choose from more than 30 portfolios with our 529 plan
What's a 529?
A 529 plan is a tax-advantaged account made specifically for education savings—like colleges, trade schools, or vocational schools. You can save for your child, another family member, or even for yourself.
You can use it to help pay for tuition, apprenticeship programs, room and board, fees, books, supplies, equipment, computer hardware and software, and internet access and related services.1
Why choose the Vanguard 529 Plan?
More than 325,000 investors across all 50 states have chosen the Vanguard 529 Plan for their kids.2
Do you want to build your portfolio or be hands-free and let us take the wheel? No matter which you prefer, we've got you covered! You can choose from our individual 529 portfolios and create your own investing strategy or select 1 of our Target Enrollment Portfolios, which automatically adjusts to become more conservative as the beneficiary's expected enrollment date approaches.
We hire top investment professionals with the experience and expertise you've come to expect from Vanguard. And as one of the largest 529 plan money managers, we're here for you now—and in the long run.4
You may be able to deduct 529 contributions from your state income tax. You can also benefit from tax-deferred growth and tax-free withdrawals for qualified education expenses.1
The Vanguard 529 plan has earned a "Silver" rating from Morningstar.5
You can link your bank account to your 529 account and set up an automatic investment schedule, which allows you to add to your savings conveniently and systematically.
You can use Ugift® to invite others to celebrate a child's milestones with the gift of education savings. The gifts are then deposited directly into your Vanguard 529 Plan account.
You can also join Upromise® to get cash back for education when you make everyday purchases. Your Upromise earnings can then be transferred to your 529 account.
What do I need to start a Vanguard 529 account?
It's fast and easy to get started online. You only need 3 things:
We offer different portfolio options
Check out the advantages of each one.
Helpful resources
Fees & other details
- No enrollment fees, transfer fees, or commissions.
- Minimum initial investment of $3,000 ($1,000 for Nevada residents); minimum additional investment is just $50.
- Maximum contribution limit is $500,000.
Other plans we service
New York
The New York 529 College Savings Program Direct Plan features Vanguard investments and no minimum contribution amount to get started. Additionally, New York state residents who sign up can receive a generous tax deduction.
Colorado
The Colorado CollegeInvest® Direct Portfolio College Savings Plan features Vanguard investments and a low minimum contribution of $25 to open an account and $15 for additional contributions. Additionally, Colorado residents who sign up can receive a generous tax deduction.6
529 plan tools
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Frequently asked questions
Yes, the IRS allows one tax-free rollover of a 529 account per beneficiary in a 12-month period. (If you violate the 12-month rule, you must treat the transaction as a nonqualified distribution and pay federal income tax and a 10% penalty on the earnings.)
Keep in mind that when you roll over to another state's plan, some states require you to pay the state income tax on any contributions you previously received a deduction for.
To roll over your current 529 account to The Vanguard 529 Plan (known as a direct rollover), you'll first need to open a new account in the plan and select With a rollover or transfer when asked to pick a funding method. Then print out your Incoming Rollover Form and mail it to your current plan.
If you prefer, you can instead withdraw the money in your current plan and then send us the check along with an Enrollment Application for a new account (known as an indirect rollover). In order for the transaction to be treated as a rollover, you must redeposit the money within 60 calendar days of withdrawing it, and the application must indicate that the initial contribution is an indirect rollover. You'll also need to enclose documentation that shows a breakdown of contributions and earnings in the account. (If documentation isn't included, we'll treat the entire amount as earnings, which could have negative tax consequences for you.)
Through a prepaid tuition plan, you buy credits for tuition, usually at a specific state college or state college system, at today's prices. If the beneficiary attends a different college or doesn't attend college at all, you may not get back the full value of the credits.
Through a college savings plan, you contribute to a fund or a portfolio of funds offered by the plan. You can use this investment to pay for tuition, room and board, books, supplies, and other qualified expenses at any accredited vocational school, college, or graduate school in the United States or abroad. You can also use your 529 college savings plan assets for K–12 tuition of up to $10,000 per student per year at a public, private, or religious school.
The Vanguard 529 Plan maximum contribution limit is $500,000. Although you can't make any additional contributions to your account once you've reached that limit, your account can continue to have the potential to grow over time.
Only the person who opens the account (the account owner) has access to it, unless the owner, using necessary documentation, grants permission to someone else.
So, for instance, if you're a grandparent who opens an account for your grandchild, the child's parents won't automatically have access to the account—i.e., the ability to check balances, change investments, or withdraw money from the account.
If you and your spouse open an account, keep in mind that one parent will be designated as the account owner and only that parent will automatically have access to the account.
Yes, 529 plans are especially popular with grandparents who want to save for a grandchild's future and reap estate planning benefits at the same time.
Beginning January 1, 2023, you can contribute up to $17,000 per year ($34,000 if married filing jointly) to a single beneficiary without triggering a federal gift tax.
And if you want to gift a larger amount, you can contribute up to $85,000 ($170,000 if married filing jointly) per beneficiary and then treat it as though you contributed that amount over a 5-year period.7 (However, you can't make additional gifts to the beneficiary during that time without triggering gift tax.)
IRS regulations only allow you to exchange money from your current 529 investment options to a different option twice per calendar year. (The automatic changes within Target Enrollment Portfolios don't count.)
However, you can change the investment options for your future contributions anytime you want.
4 things to look for in a 529 plan:
- State tax benefits—See what tax breaks your state offers for qualified higher-education expenses.
- Fees & costs—The less you pay in fees and costs, the more you'll have left to pay for college. Even costs that may seem insignificantly higher could eventually offset any state tax benefit you get from your state's plan.
See the importance of costs
- Investment choices—If you're interested in simplifying your education savings decisions, consider plans that include enrollment-year options with portfolio management built in. These are single portfolios that automatically adjust for you, becoming more conservative as students get closer to the year they expect to enroll in school.
Learn more about the investment options in The Vanguard 529 Plan
- Initial investment amount—Look for a plan that has a minimum investment that fits your budget.
Yes, more than one account can be opened on behalf of the same beneficiary. In fact, only account owners are generally eligible for state tax deductions. So if that's a benefit you're looking for, you might be better off opening a separate account for your beneficiary even if one already exists.
Almost anyone—parents, grandparents, other relatives, and friends. You can even open a 529 account for yourself!
Yes, you can move money from a Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) account to The Vanguard 529 Plan (subject to the laws of the state under which the UGMA/UTMA account was opened).
As with the original account, the money in a 529 UGMA/UTMA account will belong to the minor who owns it—meaning that it can't be transferred to a different beneficiary. In addition, the custodian will be required to transfer control of the account to the beneficiary once he or she becomes an adult.
You'll need to sell all assets in the UGMA/UTMA before moving the money to the 529, and this could trigger capital gains taxes.
Because money gifted to a child in an UGMA/UTMA account is irrevocable, you shouldn't mix UGMA/UTMA and non-UGMA/UTMA assets in the same 529 account. You should consult with a tax advisor before transferring UGMA/UTMA assets to a 529 plan.
Qualified higher-education expenses
These include room and board, books, supplies, tuition, and other costs at any accredited trade or vocational school, apprenticeship, college, or graduate school in the United States or abroad. If you use 529 plan money to pay for qualified expenses, you won't owe taxes or penalties.
Qualified family member
You can change the beneficiary of your account at any time as long as the new beneficiary is a qualified family member of the original beneficiary. Here is a partial list of relatives that are considered qualified family members according to the IRS:
- Brother, sister, stepbrother, stepsister, half-brother, or half-sister.
- Son, daughter, or a descendant of either.
- Father, mother, or an ancestor of either.
- Son-in-law, daughter-in-law, brother-in-law, or sister-in-law.
- Beneficiary's spouse or the spouse of any individual listed above.
- First cousin.
Beneficiary
The person you're opening the account for, or the future student. This person doesn't have control of the money in the account, but can use the money from the plan for school costs. The account owner controls the money on behalf of the beneficiary.
The Vanguard 529 College Savings Plan is a Nevada Trust administered by the office of the Nevada State Treasurer.
1Earnings on nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements. State tax treatment of withdrawals used for i) expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school, ii) expenses related to apprenticeship programs, or iii) student loan repayments is determined by the state(s) where the taxpayer files state income tax. If you are not a Nevada taxpayer, please consult with a tax advisor.
2Source: Vanguard
3Vanguard average 529 expense ratio: 0.14%. Industry average 529 expense ratio: 0.50%. Average annual asset-based fees for age-based portfolios. Sources: ISS Market Intelligence, December 2022.
4Vanguard managed approximately $141 billion in 529 plan assets as of June 30, 2022.
5Rated "Silver" by Morningstar, Inc., in 2021. The Morningstar Analyst Rating® for 529 College-Savings Plans is not a credit or risk rating. The rating is the subjective summary expression of the firm's forward-looking quantitative and qualitative analysis of a 529 college savings plan. Analyst Ratings are assigned on a five-tier scale running from Gold to Negative. The top three ratings (Gold, Silver, and Bronze) indicate that Morningstar's analysts think highly of a 529 plan; the differences correspond to the level of analyst conviction in the ability a plan's investment options have to collectively outperform their respective benchmarks and peers through time, within the context of the level of risk taken. The Analyst Rating seeks to evaluate each plan's investment options within the context of its objectives, appropriate benchmarks, and peer groups. Usually annually (although subject to change), Morningstar evaluates 529 plans in five different areas—process, performance, price, parent, and people—and assigns an Analyst Rating for more than 60 529 plans. For more information about the Analyst Ratings, as well as other Morningstar ratings and fund rankings, please visit morningstar.com
6Contributions to the Plan(s) are deductible from Colorado state income tax in the tax year of the contribution, up to your Colorado taxable income for that year. Such deductions are subject to recapture in subsequent years in which non-qualified withdrawals are made.
7In the event the donor does not survive the 5-year period, a prorated amount will revert back to the donor's taxable estate.
For more information about The Vanguard 529 College Savings Plan, call 877-930-4972 or obtain a Program Description (PDF), which includes investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor.
For more information about any 529 savings plan, contact the plan provider to obtain a Program Description, which includes investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing. If you are not a taxpayer of the state offering the plan, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. Other state benefits may include financial aid, scholarship funds, and protection from creditors. Vanguard Marketing Corporation serves as distributor for some 529 plans.
If you are not a Nevada taxpayer, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. Other state benefits may include financial aid, scholarship funds, and protection from creditors.
State tax treatment of withdrawals for K–12 tuition expenses, apprenticeship program expenses, and student loan repayments is determined by the state(s) where the taxpayer files state income tax. Please consult with a tax advisor for further guidance.
The Vanguard Group, Inc., serves as the Investment Manager for The Vanguard 529 College Savings Plan and through its affiliate, Vanguard Marketing Corporation, markets and distributes the Plan. Ascensus Broker Dealer Services, LLC, serves as Program Manager and has overall responsibility for the day-to-day operations. The Plan's portfolios, although they invest in Vanguard mutual funds, are not mutual funds. Investment returns are not guaranteed and you could lose money by investing in the Plan.
All investing is subject to risk, including the possible loss of the money you invest.
Upromise is a registered service mark of Upromise, Inc. Ugift is a registered service mark of Ascensus Broker Dealer Services, LLC. Please note that Upromise is an optional service offered by Upromise, Inc., and is separate from the Plan. Specific terms and conditions apply. Participating companies, contribution levels, and terms and conditions subject to change without notice.
Upromise is an optional service offered by Upromise, Inc.; is separate from The Vanguard 529 College Savings Plan; and is not affiliated with the state of Nevada. Terms and conditions apply to the Upromise service. Participating companies, contribution levels, and terms and conditions are subject to change at any time without notice. For more information about Upromise, go to upromise.com.