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More about 529 and your options
Learn about saving for education
5 reasons to consider a 529
You can use the money you save to pay for qualified education expenses in any state, or even internationally. Education expenses include: tuition and fees for K–12,* college, grad school, and trade school; books and supplies; technology costs; and even student loan repayments.**
*$10,000 per beneficiary per year limit applies. State tax treatment of K–12 withdrawals is determined by the state(s) where the taxpayer files state income tax. Please consult with a tax advisor for further guidance.
**$10,000 lifetime limit per beneficiary applies for qualified student loan repayments.
Federal tax benefits include tax-deferred growth and tax-free withdrawals for qualified education expenses.† You may also be able to deduct your 529 contributions from your state income tax (or get a state tax credit) depending on where you live.††
†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. 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.
††The availability of tax or other benefits may be contingent on meeting other requirements.
529 plans are sponsored by states, but you can save in any state's plan (just make sure to check your state’s tax rules first). You can choose your own asset mix or enroll in a target-enrollment portfolio that becomes more conservative as your beneficiary’s first day of school approaches.
As the account owner, you can save for anyone (even yourself!). You maintain control of the account and can even transfer it to another beneficiary. If your beneficiary doesn’t end up needing the money for education expenses, you can still access the money you saved. Learn more about your options
The aggregate amount you can contribute depends on your plan, but lifetime contribution limits are high.
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*$10,000 per beneficiary per year limit applies. State tax treatment of K-12 withdrawals is determined by the state(s) where the taxpayer files state income tax. Please consult with a tax advisor for further guidance.
**$10,000 lifetime limit per beneficiary applies for qualified student loan repayments.
†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. State tax treatment of withdrawals used for i) expenses for tuition in connection with enrollments 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.
††The availability of tax or other benefits may be contingent on meeting other requirements.
All investing is subject to risk, including the possible loss of the money you invest.
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. If you are not a taxpayer of the state offering the plan, consider before investing whether you 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. Vanguard Marketing Corporation serves as distributor for some 529 plans.