529 Basics An Introduction to 529 Plans
Want to save for a loved one's education but have questions? Explore how a 529 plan can simplify education savings—and how you can take the first step today.
A Guide to Understanding 529 Plans
529 Plans are a Smart Choice for Education Savings
A 529 college savings plan offers tax benefits designed to support education goals. Any investment earnings grow tax‑free, and qualified withdrawals may not be subject to federal or state income taxes.Disclaimer 1 Learn how CollegeCounts Advisor tax benefits can help you save with confidence.
529 Plans are Designed to Support Education Costs Now and in the Future
A 529 college savings plan is a state‑sponsored investment account created specifically to help families save for education expenses. Named after Section 529 of the IRS tax code, 529 plans offer special tax benefits designed to encourage long‑term education savings.
529 Plans are Simple to Open and Simple to Manage
529 plans offer flexibility and ease. Accounts can be opened by parents, grandparents, or nearly anyone, with no income restrictions. Contributions can be made by anyone who wants to help your loved one with future education goals. Savings may be used for qualified education expenses at most colleges and universities nationwide, as well as many technical, trade, vocational, and career schools. Certain K–12 expenses, apprenticeship costs, and credentialing expenses are also eligible.Disclaimer 2 Learn how CollegeCounts Advisor supports your higher education savings goals.
Who can open an account?
Individuals, certain legal entities, custodians under a state’s UGMA or UTMA statute, and trustees of a trust may open a CollegeCounts Advisor account. There are no income limits or residency requirements.
Who can be a beneficiary?
A beneficiary is the future student the account is intended to support. There are no age restrictions, and the account owner may name themself as the beneficiary if desired. The beneficiary must have a valid Social Security number or taxpayer identification number. Each account can have only one designated beneficiary.
Who can make contributions?
Anyone, including parents, grandparents, and other family members or friends, can contribute to a CollegeCounts Advisor account for the beneficiary. All contributions are managed and controlled by the account owner.
Still have questions? Reach out to your financial professional or visit our FAQs page for additional information.
CollegeCounts Advisor Features
Planning for higher education starts well before tuition is due. CollegeCounts Advisor helps you prepare by offering flexibility, potential tax benefits, competitive costs, and access to investments from well‑known fund families. Together with the expertise and guidance of your trusted financial professional, these features make the plan a strong tool for supporting your education savings journey.
Tax Advantages
Investing in the CollegeCounts 529 Advisor plan can provide potential tax benefits that could help you accumulate additional savings for future education expenses. For more information, visit our tax center and consult with your tax professional.
Each year, Alabama taxpayers can deduct contributions made to Alabama 529 plans up to:Disclaimer 1
- $5,000 per individual taxpayer
- $10,000 for a married couple filing jointly when both spouses contribute
College Costs
As the demand for higher education increases, so do the associated costs. Preparing for these expenses requires thoughtful planning and a long‑term approach. Understanding potential costs and starting to save early can help you stay on track to meet your education savings goals.
What investment options are available with CollegeCounts Advisor?
CollegeCounts Advisor offers diverse investment options from a number of respected fund families, helping you save with confidence. Work with your investment professional to familiarize yourself with our different investment approaches and select the one that’s right for you. The IRS allows an account owner to change the investment portfolio twice per calendar year or upon a change of beneficiary.
With CollegeCounts Advisor, you can confidently select the investment approach that aligns with your goals. Start building a brighter future today.