Questions You Asked

We recommend a 529 plan that's right for you based on information about you, your beneficiary, and your investment goals. We get you enrolled and facilitate contributions and withdrawals. Once you’re enrolled in a 529 plan you’ll have full control over your investment through our mobile and desktop applications. Change your monthly contribution, add another beneficiary, track your investments, and much more.

A 529 plan is a tax-advantaged investment plan that allows almost any adult—a parent, guardian, grandparent, aunt or uncle, even a friend—to help save for someone’s education, regardless of income level. You can even open a 529 plan for yourself. Earnings are free from state and federal income tax when withdrawn to pay for qualified education expenses at most accredited two- and four-year colleges and universities and vocational-technical schools anywhere in the U.S., along with many outside the U.S. Savings may even be used for certified apprenticeships. Qualified education expenses include tuition and fees, books, room and board, computers, and more. Many states allow qualified withdrawals for payment of K-12 tuition. Up to $10,000 may be paid toward principal or interest on a student loan for the beneficiary or a sibling.

The plan we recommend will be based on information we learn about your beneficiary, your investment profile, savings goal, and potential tax benefits.

Account Owner: name, address, date of birth, and social security number, banking information, successor name and address. Beneficiary: name, address, date of birth, and social security number.

Almost anyone! There are no age or income restrictions, and it doesn’t matter what state you live in. You must be a U.S. citizen or resident alien with a verified permanent U.S. address (that isn't a post office box) and valid Social Security Number or Individual Taxpayer Identification Number.

Yes, you are the account owner. You, --not the beneficiary-- control how and when plan assets are spent for qualified education expenses and only you have account access.

The person you're opening the account for (the beneficiary) must be a U.S. citizen or resident alien with a valid Social Security Number or Individual Taxpayer Identification Number. The beneficiary doesn't have to be related to you and it doesn’t matter what state he or she lives in. You can name yourself as beneficiary and use the money for your own education.

Yes. While there can be only one beneficiary named for each account, you can open separate accounts for different beneficiaries.

Yes. For example, a father, mother, grandparent, and uncle can each open a separate account for the same beneficiary and can also open separate accounts for other beneficiaries.

No. The beneficiary must have a Social Security Number or Individual Taxpayer Identification Number. However, you could open an account naming yourself as the beneficiary and then change the beneficiary of the account to the child when he or she is born.

Yes, you can change the beneficiary at any time. To avoid taxes, however, the new beneficiary must be a member of the previous beneficiary's family (including children, grandchildren, siblings, spouses, nieces and nephews, aunts and uncles, cousins and in-laws).

The plan is required by federal law to obtain certain personal information about the account owner and the beneficiary that is used to verify your identities. If you don't provide the requested information, you won't be able to open your account. The Social Security Numbers or Individual Taxpayer Identification Numbers for you and your beneficiary are also required for tax-reporting purposes.

You can select a new beneficiary but he or she must be a member of the previous beneficiary's family (including children, grandchildren, siblings, spouses, nieces and nephews, aunts and uncles, cousins and in-laws).

You can maintain your account and continue to make contributions no matter where you live in the United States. If you change your address, go to “Manage My Account” on your Edusave dashboard and enter your new address. Please note that if you are currently receiving a state income tax for contributions, moving to a new state may impact these tax benefits.

Through our mobile app or on your desktop, you simply log on and go to the “Make a Withdrawal” tab and we will walk you through the process. You have the option of receiving the money or directing it to your beneficiary or your beneficiary’s school.

Yes. You can access your money at any time. However, if you withdraw money for reasons other than qualified education expenses, you must pay federal income tax, a 10% federal tax penalty, and may be liable for state income tax and penalties on the taxable portion of the earnings.

You or the student (your beneficiary) will receive IRS Form 1099-Q in the first quarter if you made a withdrawal the previous year. Note: If you received the money, then you get the form. If the student or school received the money, the student will get the form. This form will show gross distributions, earnings, and principal. If any of the earnings are considered taxable, they should be reported on Form 1040 as part of a federal income tax return. Be sure to keep records of all qualified expenses.

Not every state allows a 529 plan to be used for K-12 education. You should consult with your tax advisor before using your 529 plan for this purpose. If your state permits, a qualified 529 plan withdrawal for K-12 education can only be used to pay "tuition" expenses. The IRS has not provided any guidance on whether anything other than a tuition bill from the applicable school qualifies as "tuition,” and accordingly, other types of educational expenditures do not appear to qualify.

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. You can contribute up to $16,000 per year ($32,000 if married filing jointly) to a beneficiary without triggering federal gift tax. And if you want to gift a larger amount, you can “front-load” up to five years of gifts. You can contribute up to $80,000 ($160,000 if married filing jointly) per beneficiary in one year and then treat it as though you contributed that amount over a 5-year period. However, you can't make additional gifts to the beneficiary during that time without triggering gift tax.

No. Returns are never guaranteed and past performance is no guarantee of future results.