Open your account now
Getting started is easy peasy. Here's how to take the first steps on your college savings journey.
Step 1: Find out if The Vanguard 529 Plan is your best option
Step 2: Choose your investments
If you're saving for higher education, after figuring out your comfort with risk, consider an age-based option to make investing as easy as possible.
Keep in mind that age-based options are generally designed to save for higher education and may not be appropriate for K–12 time horizons. If you're investing for K–12 goals, you should consider an asset mix made up of individual portfolios.
Step 3: Open your 529 account
Here's what you'll need:
- Your personal information (name, address, Social Security number, etc.).
- Your beneficiary's name, birth date, and Social Security number.
- Your banking information (bank account number and routing number), if you're going to make your first contribution using an electronic transfer.
- Your investment selections.
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.
On December 22, 2017, the president signed new tax legislation into law. The following describes several new provisions related specifically to 529 plan accounts, beginning with the 2018 tax year:
- Account owners can use assets to pay for qualified K-12 expenses up to $10,000 per year per student.
- Account owners can treat K-12 withdrawals as qualified expenses with respect to the federal tax benefit. The tax treatment of such withdrawals at the state level (determined by the taxpayer’s state of residence) is less clear, and states may ultimately determine the treatment of these withdrawals independently. Account owners should consult their tax advisors for further guidance.
- Account owners can roll over 529 plans to ABLE plans, up to the ABLE annual contribution limit. States may need to expand the definition of qualified withdrawals to include rollovers into ABLE plans. Without a change to the definition, such rollovers could be categorized as nonqualified withdrawals.
We'll provide more information as additional details about the effects of the tax bill become clear. We encourage you to consult a qualified tax advisor about your personal situation.