Need a Meaningful Last-Minute Gift? Make a 529 Contribution with The Education Plan.
If you’re still hunting for a gift that feels personal and doesn’t require shipping, a contribution to a 529 education savings plan with The Education Plan® likely checks every box. Whether you add to an existing account or open a new one, it’s a simple, high-impact gift you can make in minutes, right in time for the holidays.
A Gift That Matters
A 529 is a tax-advantaged account designed to help families save for future education costs. The savings can be used for a wide range of qualified education expenses, from two- or four-year colleges to vocational and technical programs, registered apprenticeships, K-12 tuition and expenses, student loan payments, and postsecondary credentialing expenses.
A 529 offers tax advantages when funds are used for qualified uses: earnings grow tax-deferred, and withdrawals for qualified education expenses are tax-free. Many states also provide deductions or credits for contributions. For New Mexico specifically, contributions to The Education Plan can be eligible for deduction from New Mexico taxable income, and the contributor doesn’t have to be the account owner.
Need a Gift Now? Here are Some Options
Option 1: Contribute to an existing account.
Ask the parent (or account owner) for the account’s gifting link or contribution instructions. With the Ugift® tool, gift givers can quickly and easily contribute directly into a 529 account with The Education Plan online. Ugift codes can even be shared via text message by account owners using the READYSAVE™app.
Option 2: Open a new account in about 15 minutes.
If the child doesn’t already have a 529 account, you can open one for them and make an initial deposit in about 15 minutes.
Option 3: Make it a recurring gift.
Turn a one-time gift into long-term support with an automatic monthly contribution. Even modest, consistent amounts add up.
A Smart Way to Give
If you’re planning a larger holiday gift, 529s also work well with the federal gift-tax rules. The IRS allows a five-year gift-tax averaging election for 529 contributions. This lets a donor make up to five times the annual gift-tax exclusion in one year and treat it as if it were made over five years (amounts can change; check current limits). It’s a useful estate-planning tool and a powerful way to jump-start a child’s education fund.
Wrap It Up! (No Bow Required)
Here’s a quick 529 gifting holiday checklist:
- Ask the family whether to contribute to an existing account or open a new one. If they have an existing account, ask for the child’s Ugift code.
- Determine the dollar amount contribution (one-time or monthly) and complete the online steps.
- If you file NM taxes, ask your tax advisor about deducting your contribution.
A 529 gift with The Education Plan turns your holiday generosity into year-round progress, supporting the child you love. Start contributing, keep it steady, and see your impact for years to come.
This information is for general educational purposes and should not be considered financial or tax advice. Tax benefits vary by state and individual circumstances. Please consult a tax professional or financial advisor for guidance. For details about The Education Plan®, including fees, investment options, and risks, read the Plan Description and Supplements.
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
