The Education Plan® Emphasizes the Importance of 529 Plans during Estate Planning Awareness Week

For Immediate Release
Contact: Joanie Griffin

National Estate Planning Awareness Week - October 16-22, 2023 - is dedicated to educating the public on the pivotal role of estate planning in securing financial well-being. Recent findings, as highlighted in a Brookings article, discuss the significant impact of inflation on everyday expenses, including the soaring costs of higher education. Despite a temporary respite of rising tuition costs during the pandemic, which included reduced tuition or frozen tuition hikes, institutions now grapple with revenue shortfalls in the face of the ongoing inflation, leading to cutbacks in critical resources like financial aid. Considering the financial uncertainty facing many families, incorporating 529 education savings plans into estate planning strategies can provide a means to navigate these financial challenges, while helping to secure future education and ultimately career opportunities for loved ones.

A 529 education savings plan, like the one offered through The Education Plan®—New Mexico’s’ 529 plan—offers tax advantages including tax-free growth, and tax-free withdrawals for qualified education expenses. In some states, contributions are also tax-deductible on state income tax returns. With a wide range of investment options, high contribution limits, and coverage for a variety of educational expenses, 529 plans can be a great option no matter the income level.

Additionally, a 529 savings plan through The Education Plan® can enhance estate planning, while empowering future generations. Contributions to a 529 account for a beneficiary are considered gifts for tax purposes. The federal annual gift tax exclusion allows for $17,000 for a single individual and $34,000 for married couples. For 529 plans, contributions of up to $85,000 for a single contributor (or $170,000 for married couples) can be made in a single year and applied against the annual gift tax exclusion equally over a five-year period.

“Families are often impacted by the burden of future education expenses and the substantial cost of college, so it becomes increasingly vital for families to take proactive steps in securing their financial future,” said Natalie Cordova, Executive Director of the Education Trust Board of New Mexico, the organization that administers The Education Plan®. “When planning your estate, consider looking ahead to future generations and contribute to a tax-advantaged 529 plan.”

529 plans can be used for a wide range of qualified expenses including tuition, books, room and board, meal plans, computers and software, educational special needs services, K-12 tuition (up to $10,000 per year), apprenticeship expenses, and even student loan repayment (up to $10,000). Moreover, The Education Plan® equips families with essential tools and resources such as a glossary of terms, tax benefit information, a detailed FAQ, and a help center , enabling them to navigate education financing and make more informed decisions to help secure a successful future for themselves and their families.

“529 plans offer flexibility and a simplified way to save for education expenses,” added Cordova. “With the benefits of contributing, families can take control of their financial future, while providing their loved ones with access to educational opportunities and future career opportunities."

For more information on The Education Plan® or to set up a 529 account, visit


The Education Trust Board is the governing body for the New Mexico 529 education savings programs. A 529 education savings plan is a tax-advantaged account designed to help you pay for future education expenses. The State of New Mexico sponsors two plans: a direct-sold plan (The Education Plan) and an advisor-sold plan (Scholars Edge).


To learn more about the New Mexico 529 Education Savings Program, visit


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For more information about The Education Plan, call 1.877.337.5268 or view the Plan Description and Participation Agreement, which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing.

Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You also should consult a financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 plan(s), or any other 529 plan, to learn more about those plan’s features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

The Education Plan is administered by The Education Trust Board of New Mexico. Ascensus College Savings Recordkeeping Services, LLC, the Program Manager, and its affiliates, have overall responsibility for the day-today operations, including investment advisory, recordkeeping and administrative services. The Education Plan’s portfolios invest in: (i) mutual funds; (ii) exchange traded funds; and/or (iii) a funding agreement issued by New York Life. Investments in The Education Plan are not insured by the FDIC. Units of the portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns will vary depending upon the performance of the portfolios you choose. You could lose all or a portion of your money by investing in The Education Plan depending on market conditions. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences.

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