The 529 Day $5.29 Challenge
This May 29th, we’re inviting every family to do something simple, yet meaningful: Contribute $5.29 to a 529 account with The Education Plan.
That's it. About the cost of a coffee, a snack or something you’d toss in your grocery cart without much thought.
You don’t need to have future education savings, like college, all figured out. You don’t need to know what your kid wants to be when they grow up (and neither do they!) You just need five dollars and twenty-nine cents, and the good feeling that comes with taking that first step.
Why $5.29?
Saving for your child’s future doesn’t have to start big. It just has to start.
Opening a 529 savings plan might feel like a decision that requires a plan, a spreadsheet and answers to questions you’re not ready to answer. But the truth is, the most valuable thing you can do is simply to begin. Time is what helps education savings grow, and even a smaller account started early can help build your child’s educational future.
Opening an account and contributing $5.29 is a small step that can start that journey. Once the account exists, adding to it over time is easy and important. And every contribution, big or small, is a little more of your child’s future taken care of.
Join In
- Open an account with The Education Plan. It takes about 10 minutes. If you already have a 529 with The Education Plan, skip to step 2!
- Make a $5.29 contribution today. Decide if you can make that contribution recurring!
- Pass it on. Share the challenge with a friend, post about it on your social media, or tell another parent. Use the unique U-Gift code to invite family and friends to contribute.
No big commitment required. No perfect plan needed. Just $5.29 on 5/29 as a small and joyful investment in the child you love.
Note: Contributions made on the “Ready Save 529” app can only be made in whole dollars.
Frequently Asked Questions
A 529 plan is a tax-advantaged investment account that is designed to grow savings for future education expenses for a specified beneficiary. 529 plans offer unique benefits and features that make them an appealing strategy for education related saving.
A 529 plan can be used for “qualified educational expenses.” For federal tax purposes, qualified educational expenses include:
- Tuition and fees at accredited higher education institutions
- Books
- Supplies and equipment
- Room and board for beneficiaries attending on at least a half-time basis.
- Computer technology, equipment, and internet access
- Up to $10,000 a year for K-12 tuition and expenses (Limit increase to $20,000 in 2026)
- Expenses for educational special needs services
- Transfers to an ABLE account for the beneficiary (transfer subject to annual limit)
- Apprenticeship expenses
- Up to $10,000 for student loan repayment
- Credentialing expenses and certification programs
- Roth IRA rollover for the beneficiary
If you're not sure if an expense is considered "qualified," we recommend consulting with a tax professional or advisor. Unqualified expenses will be treated like ordinary income: state and federal taxes will apply, with a 10% federal penalty for withdrawals from your 529 plan used to pay for them.
New Mexico residents can deduct contributions to The Education Plan from their state taxable income each year. This includes contributions made to an account that you are not the account owner of.
You cannot deduct contributions from federal income taxes.
Any person at least 18 years old with a valid Social Security Number (SSN) or Tax Identification Number (TIN) can open a 529 account. The account holder chooses the investment options, designates a beneficiary, and requests the distribution of funds.
The cost of college continues to rise, including tuition, housing, food and supplies, so it’s important to begin saving as soon as possible. You can learn more about how much a typical college education costs on our Cost of College page. It’s never too early or too late to start.
The Education Plan offers a variety of investment options to fit you and your family’s needs, risk tolerance and goals. You can see all of the available investment portfolios on the investments page.
Yes, you can use up to $20,000* a year to cover tuition and expenses for K-12 education.
Qualified K-12 expenses include:
- Tuition (public, private, and religious)
- Curriculum materials, books (including digital/online) and instructional materials
- Tutoring and instructional classes**
- Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission
- Dual enrollment program fees
Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies
*Starting in tax year 2026. The annual limit is $10,000 in tax year 2025 and permitted for tuition only.
**Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor is not related to the student and—
(i) is licensed as a teacher in any State,
(ii) has taught at an eligible educational institution,
or (iii) is a subject matter expert in the relevant subject.
You can open an account with The Education Plan online or by mailing in the enrollment form. In order to open an account, you will need the following information:
- Your social security number or TIN
- Your address
- Your bank account information (in order to fund the account)
- The beneficiary’s social security number or TIN
- The beneficiary’s birthday
-The beneficiary’s address
