529 savings plans

529 plans are flexible, tax-advantaged accounts designed specifically for education savings. Funds can be used for qualified education expenses at schools nationwide.



Before you start you will need to know the child's date of birth, social security number and what investment choices you want.

Current account owners - log in

Why choose a 529 plan?

529 funds can be used for a wide range of education expenses, including college expenses at postsecondary schools nationwide, tuition for K-12 schools, certain apprenticeship costs, and student loan repayments.1 An overview of key features is below.

Earnings grow tax deferred


While your money is in the account, no taxes will be due on investment earnings.

No annual account fees


Also, no account minimums required to open a Fidelity-managed 529 account.

Tax-free withdrawals for qualified education expenses


Withdrawals for qualified education expenses are free from federal income tax.


For non-qualified withdrawals, the portion attributed to investment earnings is subject to federal and state income taxes plus a 10% federal penalty.

Federal tax treatment of gifts


Contributions up to $18,000 annually are not subject to the federal gift tax.2


In a 529, you can combine 5 years worth of contributions, or $90,000.3

Little effect on financial aid eligibility


529 assets have a relatively small effect on federal financial aid eligibility because they are considered assets of the parent in the Student Aid Index (SAI) formula.4

Beneficiary changes


The 529 account beneficiary can be changed to an eligible family member to use for their qualified education expenses.5

State tax incentives for contributions


Some states may offer tax incentives for contributions by state residents.6

Investment options


Choose from a menu of portfolios managed by professional fund managers.


Where do you live?

Depending on your state of residence, a Fidelity-managed, state-specific plan may be a good option for you. If Fidelity does not manage a plan for your state, you may want to consider our national plan, the UNIQUE College Investing Plan (sponsored by the state of New Hampshire). Be sure to consider your own or the beneficiary's home state 529 plan as some states offer favorable tax treatment or other benefits to their residents only if they invest in their own state's 529 plan.6

 

Arizona's Education Savings Plan

You can invest in 529 savings plans from states across the country. Be sure to consider your own state plan as it may have additional benefits, including state tax advantages.


 

You can invest in 529 savings plans from states across the country. Be sure to consider your own state plan as it may have additional benefits, including state tax advantages.


 

Delaware 529 Education Savings Plan

You can invest in 529 savings plans from states across the country. Be sure to consider your own state plan as it may have additional benefits, including state tax advantages.


 

U.FUND College Investing Plan

You can invest in 529 savings plans from states across the country. Be sure to consider your own state plan as it may have additional benefits, including state tax advantages.


 

Unique College Investing Plan

You can invest in 529 savings plans from states across the country. Be sure to consider your own state plan as it may have additional benefits, including state tax advantages.


 

Unique College Investing Plan

You can invest in 529 savings plans from states across the country. Be sure to consider your own state plan as it may have additional benefits, including state tax advantages.


Saving a little over time can go a long way*


Help reduce the amount of loans borrowed for education expenses




Hypothetical chart

  • How this chart works

    *This hypothetical example illustrates the potential value of different regular monthly investments for different periods of time and assumes an average annual return of 4.5% rounded to the nearest $50. Contributions to a 529 plan account must be made with after-tax dollars. This does not reflect an actual investment and does not reflect any taxes, fees, expenses, or inflation. If it did, results would be lower. Returns will vary, and different investments may perform better or worse than this example. Periodic investment plans do not ensure a profit and do not protect against loss in a declining market. Past performance is no guarantee of future results.

Common questions on 529 college savings plans

View all FAQs


What is a 529 savings plan?


529 savings plans are flexible, tax-advantaged accounts designed specifically for education savings.


Earnings on contributions grow federal income tax-deferred, and withdrawals taken to pay for qualified higher education expenses such as tuition, fees, books, computer expenses, or room and board are free from federal income taxes.


Am I on track? How do I estimate higher education costs?


Anyone can use our college savings calculator to figure out how much to save each month. Login or become a member to create a personalized savings planLog In Required and track your progress.


It's hard to predict your child's future educational path. Visit the Fidelity Learning Center for a variety of strategies and tips to help you prepare.


What can I do with the money left in the account?


The 529 account beneficiary can be changed to an eligible family member to use for their qualified education expenses.


Under certain conditions you may be eligible to transfer assets from your 529 to a Roth IRA established for the beneficiary of the 529 account.7


You can also take a non-qualified withdrawal. Only the portion of the non-qualified withdrawal attributed to investment earnings will be subject to federal and state income taxes plus a 10% federal penalty.

Still unsure?


Learn more about why a 529 is a good option


How can the gifting feature help out?

Family and friends can contribute easily with our free online gifting feature. Even small amounts can add up over time.


It's as simple as sharing a link to your College Gifting page. And we do not display your account information, helping to protect your privacy.