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.