By Ashley Durham, Senior Writer, my529

December 2, 2020


This year, simplify holiday shopping for your family and friends by inviting them to contribute to your beneficiary’s 529 account. In the long term, a gift is an investment for your beneficiary’s future education and career. Even better, loved ones can contribute without leaving the house.

A 529 educational savings account receives federal tax advantages—tax-deferred earnings and tax-free withdrawals for qualified higher education expenses like tuition, mandatory fees, and certain room and board costs. And many states offer state tax benefits for 529s as well.

“Rather than material gifts like toys or trips, we like to get people to contribute [to our children’s 529 accounts]. It pulls double duty—it eliminates material items and bolsters college educational accounts,” said account owner Mike S., of Colorado, about why he uses Utah’s my529 Gift Program.

Keep 529 gifting in mind for events big and small. You can even involve your beneficiaries in giving the gift of education to themselves.

Graduation—Celebrate Pre-K to grad school and beyond.

Report cards—Mark the end of a semester with a contribution to your child’s my529 account.

Birthdays—The advent of another year is a great time to invest in your child’s future.

Special occasions—Baby showers, recitals, athletic events, religious occasions and more.

Holidays—Invite your family to contribute a holiday gift that lasts with my529.

Contributions to his children’s 529 accounts from friends and family have had “a very important, meaningful impact ultimately on our children’s future life and education,” Mike S. said.

For more information about 529 gifting, visit College Savings Plan Network (CSPN) then contact your state’s plan.


About the Author

Ashley Durham is a senior writer for my529. To learn more about the program, visit my529.