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529 Plans by State: Benefits of a College Savings Plan

A 529 plan is a college savings account that offers a tax-advantaged way to invest money for qualified education expenses.

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Updated Nov 4, 2025 · 1 min read

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Types of 529 plans

There are two main types of 529 plans:

529 college savings plans are the most common type and generally considered the best and most flexible 529 option. Investments grow tax-free for qualified educational expenses.

529 college savings plans 529 college savings plans are the most common type and generally considered the best and most flexible 529 option. Investments grow tax-free for qualified educational expenses.

529 prepaid plans let you prepay part or all of an in-state public tuition, locking in the tuition at time of payment.

529 prepaid plans 529 prepaid plans let you prepay part or all of an in-state public tuition, locking in the tuition at time of payment. Advertisement

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529 plan benefits

There are a number of benefits to saving for college in a 529 account, especially when compared with a standard savings account or investment account:

529 asset ownership: The money you save in a 529 plan is considered your own asset, rather than an asset of the beneficiary. This arrangement is preferred when it comes to financial aid formulas.

529 asset ownership: 529 asset ownership: The money you save in a 529 plan is considered your own asset, rather than an asset of the beneficiary. This arrangement is preferred when it comes to financial aid formulas.

Tax-deductible contributions: As you can see on the list below, many states offer a state tax deduction for contributing to a 529 plan. This means that in some states, you may be able to deduct 529 contributions — often up to a limit — potentially reducing your state tax burden.

Tax-deductible contributions: Tax-deductible contributions: As you can see on the list below, many states offer a state tax deduction for contributing to a 529 plan. This means that in some states, you may be able to deduct 529 contributions — often up to a limit — potentially reducing your state tax burden.

Simplified investment options: Many 529 plans offer a small selection of age-based investment options, similar to the target-date funds you might be used to seeing in retirement accounts. This makes investing your college savings fairly straightforward.

Simplified investment options: Simplified investment options: Many 529 plans offer a small selection of age-based investment options, similar to the target-date funds you might be used to seeing in retirement accounts. This makes investing your college savings fairly straightforward.

Tax-advantaged investment growth: The money you earn by investing your contributions grows tax-deferred, which means it isn't subject to capital gains taxes on an annual basis. And when you use distributions to pay for qualified education expenses, they are tax-free. This means you may never pay taxes on the investment earnings in the account

Tax-advantaged investment growth: Tax-advantaged investment growth: The money you earn by investing your contributions grows tax-deferred, which means it isn't subject to capital gains taxes on an annual basis. And when you use distributions to pay for qualified education expenses, they are tax-free. This means you may never pay taxes on the investment earnings in the account IRS.gov. 529 Plans: Questions and answers. Accessed Nov 4, 2025. . (However, if you need to take a distribution for a nonqualified expense, you may owe income taxes and 10% penalty on the earnings Congress.gov. Tax-Preferred College Savings Plans: An Introduction to 529 Plans. Accessed Nov 4, 2025. .)

Somewhat flexible: You can change the beneficiary on your 529 account, which means if one child decides not to go to college or use the funds for a qualifying expense, you could redirect the funds to another family member. In December 2022, the Secure 2.0 Act added additional flexibility beyond that: Once a 529 account has been open for 15 years, beneficiaries can roll up to $35,000 from the account into their Roth IRA

Somewhat flexible: Somewhat flexible: You can change the beneficiary on your 529 account, which means if one child decides not to go to college or use the funds for a qualifying expense, you could redirect the funds to another family member. In December 2022, the Secure 2.0 Act added additional flexibility beyond that: Once a 529 account has been open for 15 years, beneficiaries can roll up to $35,000 from the account into their Roth IRA SECURE 2.0 Act of 2022. Expanding Coverage and Increasing Retirement Savings. Accessed Nov 4, 2025. . This is a lifetime limit, but the rollovers count toward Roth IRA annual contribution limits .

» Dive deeper: Read more on 529 plan rules

» Dive deeper: » Dive deeper: Read more on 529 plan rules

How do I find the best 529 plan?

The best 529 plan for you is going to depend on your investment goals and the state where you live, because these plans can vary widely (as can the associated tax benefits for 529 contributions). Start by looking at your state’s plans. Unlike retirement and other investment accounts, 529 savings plans are typically operated by states, which makes searching for the best option fairly easy. If your state offers a tax deduction for contributing, you’ll likely get the most bang for your buck by contributing to its plan.

Looking to save a little money? Consider direct-sold 529 plans, which are sold by the state, rather than through an advisor. Cutting out the intermediary can mean lower fees. Just know that you'll be responsible for managing your investment.

You don't have to contribute to your state’s plan, though. You’re free to choose any plan you’d like, so it’s worth comparing your options. Plus, some states offer more than one 529 plan to consider.

» MORE: This quiz can help you see if it's time to get a financial advisor

» MORE: » MORE: This quiz can help you see if it's time to get a financial advisor

529 plans by state

You can find detailed information about each state's 529 plan below, including the minimum contribution you'll have to make to start an account. We also have a list of 529 contribution limits by state.

State

State State

Plan Name

Plan Name Plan Name

Tax benefit for in-state contributors?

Tax benefit for in-state contributors? Tax benefit for in-state contributors?

Minimum contribution

Minimum contribution Minimum contribution

Alabama

CollegeCounts

Yes

Alaska

Alaska 529

$25

Arizona

AZ529

Yes

$15 or less

Arkansas

Arkansas Brighter Future 529

Yes

$25

California

ScholarShare 529

Colorado

CollegeInvest

Yes

$0-$25 depending on plan

Connecticut

Connecticut Higher Education Trust (CHET)

Yes

Delaware

DE529

Yes

$100

District of Columbia

DC College Savings Plan

Yes

$25

Florida

Florida 529 Savings Plan

Georgia

Path2College 529 Plan

Yes

$25

Hawaii

HI529

$15

Idaho

IDeal - Idaho College Savings Program

Yes

$25

Illinois

Bright Start 529 Plan

Yes

Indiana

Indiana529 Direct

Yes

$10

Iowa

College Savings Iowa 529

Yes

$25

Kansas

Learning Quest 529 Education Savings Plan

Yes

Kentucky

KY Saves 529

Louisiana

Louisiana's Student Tuition Assistance & Revenue Trust

Yes

$10

Maine

NextGen 529

Yes

$25

Maryland

Maryland 529

Yes

$25

Massachusetts

U.Fund 529 College Investing Plan

Yes

Michigan

Michigan Education Savings Program

Yes

$25

Minnesota

MN Saves

Yes

$25

Mississippi

College Savings Mississippi

Yes

$25

Missouri

MOST — Missouri's 529 Education Plan

Yes

Montana

Achieve Montana

Yes

$25

Nebraska

NEST 529 Advisor Plan

Yes

Nevada

NV529PLANS

Depends on plan

New Hampshire

UNIQUE College Investing Plan; Fidelity Advisor 529 Plan

UNIQUE College Investing Plan ; Fidelity Advisor 529 Plan

New Jersey

NJBEST

Yes

$25

New Mexico

The Education Plan

Yes

New York

New York’s 529 College Savings Program

Yes

North Carolina

NC 529 Plan

$25

North Dakota

College SAVE

Yes

$25

Ohio

Ohio's 529 College Advantage

Yes

$25

Oklahoma

Oklahoma 529 College Savings Plan

Yes

$25

Oregon

Oregon College Savings Plan

Yes

$25

Pennsylvania

PA 529

Yes

Rhode Island

CollegeBound Saver

Yes

South Carolina

Future Scholar

Yes

South Dakota

CollegeAccess 529

$250

Tennessee

TNStars

$25

Texas

Texas College Savings Plan

$25

Utah

My529

Yes

Vermont

VT529

Yes

Virginia

Virginia529

Yes

$10

Washington

DreamAhead College Investment Plan

$25

West Virginia

SMART529

Yes

Wisconsin

Edvest 529

Yes

$25

Wyoming

No plan available.

Table updated as of November 4, 2025.

Table updated as of November 4, 2025. Table updated as of November 4, 2025.

Prepaid 529 plans by state

This table shows only prepaid plans. Note that the minimum contributions required depend on the cost of a credit or the monthly payment plan. You'll need to check the specific plan for the correct minimum.

State

State State

Plan Name

Plan Name Plan Name

Tax benefit for in-state contributors?

Tax benefit for in-state contributors? Tax benefit for in-state contributors?

Florida

Florida Prepaid Plans

Massachusetts

U.Plan Prepaid Tuition Program

Yes

Michigan

Michigan Education Trust (MET)

Yes

Mississippi

Mississippi Prepaid Affordable College Tuition Plan (MPACT)

Yes

Nevada

Nevada Prepaid Tuition Program

Texas

Texas Tuition Promise Fund

Washington

Guaranteed Education Tuition

Table updated as of November 4, 2025.

Table updated as of November 4, 2025. Table updated as of November 4, 2025. Advertisement

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Article sources

NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines. IRS.gov. 529 Plans: Questions and answers. Accessed Nov 4, 2025. Congress.gov. Tax-Preferred College Savings Plans: An Introduction to 529 Plans. Accessed Nov 4, 2025. SECURE 2.0 Act of 2022. Expanding Coverage and Increasing Retirement Savings. Accessed Nov 4, 2025. About the authors Alana Benson Alana Benson Alana Benson is an investing writer who covers socially responsible and ESG investing, financial advice and beginner investing topics. Her work has appeared in The New York Times, The Washington Post, MSN, Yahoo Finance, MarketWatch and others. See full bio. Erica Corbin Erica Corbin Erica Corbin is a former assigning editor at NerdWallet. Previously, she edited finance topics at GOBankingRates and Nasdaq. See full bio.

Helpful resources

Helpful resources Best Financial Advisors Search for a Financial Advisor Near You How to Choose a Financial Advisor in 5 Steps 3 Best Wealth Management Services More like this Investment Basics Investing How Much Does a Financial Advisor Cost? Most financial advisors charge based on how much money they manage for you. Fees are typically 1% a year but can be lower. 2 By Andrea Coombes, Taryn Phaneuf Do You Need a Financial Advisor? 7 Ways to Tell You may need a financial advisor if you're facing big life changes, don't have financial goals, have complex compensation, high tax bills or for other reasons. Taryn Phaneuf How to Find Cheap or Free Financial Advice Quality financial advice is more accessible than ever — and much of it is free or inexpensive. Here's how to get it. Anna-Louise Jackson Retirement Calculator Are you on track to save enough for retirement? Use our calculator to check your progress, see how much retirement income you'll have and estimate how much more you should save. 2 By June Sham, Alana Benson

529 Plans by State: Benefits of a College Savings Plan

You’re our first priority. Every time.

529 Plans by State: Benefits of a College Savings Plan

Types of 529 plans

529 plan benefits

How do I find the best 529 plan?

529 plans by state

Prepaid 529 plans by state

You’re our first priority.
Every time.