The Best Last-Minute Gift Idea for Every Child In Your Life
The holiday season may be filled with excitement, but it often brings a whirlwind of responsibilities, too. Year-end tasks at work, social gatherings, shopping, and planning can pile up quickly. With so much happening at once, there’s little time to stand in long lines or spend hours online hunting for the perfect toy or game. And while online ordering is convenient, unpredictable shipping windows can leave you wondering whether your gifts will arrive in time, especially as the month comes to a close.
Avoid those lines and enjoy more time with family by giving a gift that will set children up for future success and will always arrive on time—the gift of educational savings. The Education Plan® makes it easy to make a 529 college savings plan gift contribution or open a new account for anyone on your holiday list.
What is a 529 Plan?
A 529 plan with The Education Plan is a smart, tax-advantaged way to save for future education expenses and reduce the burden of student loan debt. Whether you want to save for education goals for a loved one or yourself, a 529 plan can help any aspiring student, regardless of age, career path or socioeconomic status.
How to Contribute
The holidays are the perfect time of year to open a new account or contribute to an account for a child or loved one. It’s not the latest toy, but it is a gift that lasts forever, easing the financial burden of future college expenses for parents and children.
At first, some children may not understand the value of the gift, but this is a great, teachable moment. Discuss the importance of money and its impact on your child’s future. Emphasize the power of saving, particularly for big expenses like college. Explain the benefits and encourage them to contribute as well, perhaps even that $20 bill from grandma.
To give to someone with an existing 529 account with The Education Plan®, ask the plan holder to set up a gifting code you can use to contribute. It’s simple and easy to do. If you’d like to open a new account for a loved one, you can get started here.
Whether it’s for your own child, a niece or nephew, a grandchild or even a friend’s child, a 529 contribution is a gift that will never get outgrown, misplaced or broken. You can find a variety of downloadable holiday gift certificates and learn more about gifting a 529 contribution on The Education Plan® gifting page.
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
