The Best Valentine’s Day Gift
Unknown to many, Valentine’s Day has a dark and mysterious history – one full of martyrs, secret weddings, young love, prison, and Popes. Even though no one knows its precise origin, by the early 20th century, people began exchanging the traditional gifts of cards, chocolate, and flowers on this holiday. Since then, the types of gifts have evolved to include wine, customized jewelry, spa treatments, and romantic get-aways. Today, people spend more than $18.9 million on Valentine’s Day gifts each year.
Why not do something different and give a gift that never gets broken, outgrown, or forgotten? Contribute to your children’s or grandchildren’s 529 college savings plans. Investing in your loved ones’ future is much better than giving them chocolate and candy hearts. It’s an excellent way to create an educational legacy.
Benefits
Not only are contributions to a 529 college savings plan a gift for your children, they are also a gift for you. With a 529 college savings plan, as long as your contributions are used for qualified higher education expenses, you do not have to pay federal taxes on your earnings and withdrawals. Qualified expenses include tuition, room and board, textbooks, computers – most college essentials. New Mexico residents have an additional tax advantage: New Mexico is one of only four states that allows you to claim a state tax deduction every year on all contributions to your 529 plan. Plus, your contributions are compounded, meaning that your assets are re-invested, so your earnings grow over time.
Simplicity
Don’t have a 529 college savings plan for your children? You can set one up with The Education Plan® with as little as $1. No matter how old your child is, saving for future college expenses should be a top priority, and 529 contributions can be a go-to gift for every holiday, or for any day at all. The Education Plan makes gift-giving easy with Ugift. Ugift generates a unique code that you can share with loved ones and friends so they can contribute, too. The Education Plan also offers a new mobile savings app that makes giving even easier.
Grandparents
As a grandparent, you most likely enjoy doting on your grandchildren and spoiling them with gifts. Giving the gift of education is a smart way to distribute your assets and an excellent legacy planning opportunity. Opening a 529 account or contributing to one is a great way to teach your grandchildren about the importance of higher education. You are supporting their dreams and aspirations and, by minimizing their future student loan debt, you are helping to create a secure future. If you prefer to give a tangible gift, with The Education Plan and Ugift you can choose from a variety of downloadable gift certificates.
Valentine’s Day is a holiday known for giving gifts to loved ones and friends. This year, make it even more meaningful by contributing to your children’s or grandchildren’s 529 college savings plans.
Studies show that kids are four times more likely to graduate college if they have just $500 saved. Help make that happen. Contribute as much as you can, whenever you can, including holidays like Valentine’s Day. They may not appreciate it now, but they will thank you for it later. Set up your account with The Education Plan or make a Valentine’s Day contribution today.
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
