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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.
Any 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 $19,000 annually are not subject to the federal gift tax.2
In a 529, you can combine 5 years worth of contributions, or $95,000.3
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 individual 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
All Fidelity-managed 529 plans earned a best-in-class rating from Morningstar.7
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

You can invest in 529 savings plans from states across the country. Be sure to consider your own state planOpens in a new window 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 planOpens in a new window 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 planOpens in a new window 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 planOpens in a new window 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 planOpens in a new window 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 planOpens in a new window 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

Learn
Explore the latest ways to save and pay for a child’s education with a 529 Plan
Learn how a 529 can help you reach your educational savings goals at any stage of your journey.
The tax-smart way to help save for college
The money moves to help you reach your education goals.
Ways to help maximize your education savings strategies
Planning to help pay for your child’s higher education? Learn how a 529 savings plan can help you get there.
The ABCs of 529 savings plans
Learn ways to explore investment options and potential tax advantages.
Common questions on 529 college savings plans
What is a 529 savings plan?
529 savings plans are flexible, tax-advantaged accounts designed specifically for education savings.
Any 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 plan 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.8
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.
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.