What is a 529 College Savings? – Definition and Plans By State

A 529 plan is a tax-advantaged chance to save for your child’s college education, and depending on where you live, you may be eligible for additional tax benefits. Compare the plans of each state.

529 College Savings
529 College Savings

A 529 plan can be an excellent method to save for college, particularly when inflation rises. All you need to know is where to begin.

What is a 529 account?

A 529 plan is a tax-advantaged college savings plan that can be used to pay for qualified school expenses such as tuition or books for a beneficiary. While the subsidies were initially restricted to higher education, they are now available for kindergarten through grade 12, as well as recognized apprenticeship programs and eligible student loan repayments.

529 plans are classified into two types:

529 college savings plans are the most common type. Investments grow tax-free and can be used to pay for educational expenses like tuition, housing & board, and necessary textbooks.

529 prepaid plans allow you to prepay a portion or all of your in-state public tuition, so locking in the tuition at the time of payment.

How can I find the best 529 plans?

Start by researching your state’s plans. Unlike pensions and other investment accounts, 529 savings plans are primarily managed by states, making it very simple to find the best alternative. If your state provides a tax deduction for contributions, contributing to its plan will likely give you the greatest hit for your buck.

However, you are not required to contribute to your state’s plan. You are free to select any plan you want, so it is worthwhile considering your possibilities. Furthermore, multiple governments provide more than one 529 plan to choose from.

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529 college savings plans by state

The information is available in the table below, including the minimum contribution required to open an account.

StatePlan NameTax benefit for in-state contributors?Minimum contribution
AlaskaAlaska 529No$25
ArizonaAZ529Yes$25 or less
ArkansasArkansas 529 GIFT PlanYes$25
CaliforniaScholarShare 529No$0
ConnecticutConnecticut Higher Education Trust (CHET)Yes$0
District of ColumbiaDC College Savings PlanYes$25
FloridaFlorida 529 Savings PlanNo$0
GeorgiaPath2College 529 PlanYes$25
IdahoIDeal – Idaho College Savings ProgramYes$25
IllinoisBright Start 529 PlanYes$0
IndianaCollegeChoice 529Yes$10
IowaCollege Savings Iowa 529Yes$25
KansasLearning Quest 529 Education Savings PlanYes$0
KentuckyKY Saves 529No$25
LouisianaLouisiana’s Student Tuition Assistance & Revenue TrustYes$10
MaineNextGen 529No$25
MarylandMaryland 529Yes$25
MassachusettsMassachusetts 529 college savings planYes$0
MichiganMichigan Education Savings ProgramYes$25
MinnesotaMN SavesYes$25
MississippiCollege Savings MississippiYes$25
MissouriMOST — Missouri’s 529 Education PlanYes$1
MontanaAchieve MontanaYes$25
NebraskaNEST 529 Advisor PlanYes$0
NevadaNevada College Savings Plans ProgramNo$15
New HampshireUNIQUE College Investing PlanNo$0
New JerseyNJBESTNo$25
New MexicoThe Education PlanYes$1
New YorkNew York’s 529 College Savings ProgramYes$0
North CarolinaCollege Foundation of North CarolinaNo$25
North DakotaCollegeSAVEYes$25
OhioOhio’s 529 College AdvantageYes$25
OklahomaOklahoma 529 College Savings PlanYes$100
OregonOregon College Savings PlanYes$25
Rhode IslandCollegeBound SaverYes$0
South CarolinaFutureScholarYes$0
South DakotaCollegeAccess529No$250
TexasTexas College Savings PlanNo$25
WashingtonDreamAhead College Investment PlanNo$25
West VirginiaSMART529Yes$1
WyomingNo plan available.

Prepaid 529 plans by state

This table shows only prepaid plans. It has to be noted that the minimum contributions necessary are determined by the cost of the credit or the monthly payment plan. You must consult the specific plan for the correct minimum.

StatePlan NameTax benefit for in-state contributors?
FloridaFlorida Prepaid PlansNo
MarylandMaryland Prepaid College TrustYes
MassachusettsU.Plan Prepaid Tuition ProgramYes
MichiganMichigan Education Trust (MET)Yes
MississippiMississippi Prepaid Affordable College Tuition Plan (MPACT)Yes
NevadaNevada Prepaid Tuition ProgramNo
TexasTexas Tuition Promise FundNo
WashingtonGuaranteed Education TuitionNo

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529 College Savings Plans By State
529 College Savings Plans By State


What is 529 College Savings Plan?

A 529 College Savings Plan is a tax-advantaged savings account designed to help individuals and families in saving for college expenses. It is referred to after Internal Revenue Code Section 529 and allows you to invest cash for future educational costs such as tuition, books, and room and board.

How Can I Start a 529 Plan?

529 plans can be opened with a state directly. Many brokers and financial advisors also offer 529 plans. They will help you in selecting from a variety of options available around the country.

Which states have 529 college savings plans?

Except for Wyoming, every state has a 529 college savings plan. A complete list of 529 college savings plans, organized by state.

Who is eligible to contribute to a 529 plan?

Anyone can contribute to the majority of 529 plans. Each account can only have one owner, but others – family members and even friends – can contribute.

Can you use 529 savings for expenses other than tuition?

529 savings plans can be used to pay for a variety of college expenses, including:

• Tuition Fees
• Room and board fees that apply
• Any school supplies (for example, computers)
• Student loans repayments
• Apprenticeship programs