Federal 529 Plan Tax Benefits

Federal 529 tax benefits available to all U.S. tax

You do not need to live within one of our sponsoring states to realize federal tax benefits.

Earnings grow tax-free.
Distributions to pay qualified education expenses are tax-free.
Anyone can participate and there are no income limitations.
Participants also benefit through tax-free gifting. Account owners can make annual gifts of up to $13,000 single and $26,000 joint to a designated beneficiary for all accounts without incurring federal gift tax. For contributions over the limit, you may treat the money (up to $65,000 single and $130,000 joint) as having been made ratably over a five-year period.
At any time you may prepay as much college and graduate school as you'd like up to $340,000 - the current maximum contribution limit.
Assets in a 529 account are not treated as part of the federal taxable estate of the account owner who is not a designated beneficiary.
U.S. Savings Bond owners generally may redeem bonds purchased after 1989 tax-free and deposit the proceeds in a 529 plan. IRS restrictions apply. Please see the IRS Tax Benefits for Education for current income limitations or call 800-888-2723 for more information.
If the child does not go to college you can change the beneficiary penalty free.

Page Links:
- Az. Tax Benefits - Mt. Tax Benefits - Other State Tax Benefits - 529 Plans

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