Answer a few simple questions to find the right account for your education savings.

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Personal finance

Making the 529 decision

Making the 529 decision

6 minute read • April 10, 2024

Little girl and mom smiling while doing homework together at the table.

Sometimes it can be hard to decide how to begin saving for education—especially when there are so many unknowns in play. The biggest one of these may be, "What if we don't end up needing the money in our 529?" Thanks to SECURE 2.0, 529 plans offer the option of rolling up to $35,000 into a Roth IRA for the beneficiary if you don't use it for education*—giving you more flexibility for your loved one's future. We've got a few simple questions that can help you decide if The Vanguard 529 might be right for you.

There's a lot to love about The Vanguard 529

If you still have questions about how it can fit into your life, we've got answers. Or if you're ready to join over 350,000 families nationwide as a Vanguard 529 investor, we're ready to welcome you.

Open your 529 account

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*Certain restrictions apply, including to whom the assets may be transferred, a required holding period of 15 years, and limits on rollovers of contributions made within the 5 years prior to the rollover. The annual rollover limit is subject to Roth IRA annual contribution limits with a lifetime limit of $35,000 for each 529 account beneficiary. Consult your tax advisor prior to initiating a rollover. This is a provision of SECURE 2.0, passed in December 2022 (effective beginning in 2024) as a follow-up to the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.

**Earnings 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.

***Learn more about your state's 529 plan options here.

Certain conditions may apply. There may be other material differences between products that must be considered prior to investing.

All investing is subject to risk, including the possible loss of the money you invest.

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.

For more information about The Vanguard 529 College Savings Plan, call 888-726-4085 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.

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.

For more information about any 529 college 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.

The Vanguard 529 College Savings Plan is a Nevada Trust administered by the office of the Nevada State Treasurer.

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.