By Lael M. Oldmixon, M.Ed. , is the Executive Director of the Education Trust of Alaska
February 11, 2025
My relationship with the 529 education savings industry started after the birth of my first child. I vividly remember pushing his stroller at the state fair and seeing a booth for Alaska’s education savings plan. The staff were at the fair to promote a scholarship account giveaway and educate the public about the state’s 529 program. My spouse and I strongly desired to do something but weren’t quite ready to commit to a savings tool. We were trepidatious about starting a 529 account and overwhelmed by the jargon, the risks, and frankly, by the feeling that we may be locked into something that didn’t give us flexibility and liquidity. That moment at the state fair provided us with a person to answer our questions, allay our fears, and coach us in taking the first steps to start a long engagement with 529s.
My relationship with the 529 education savings industry started after the birth of my first child. I vividly remember pushing his stroller at the state fair and seeing a booth for Alaska’s education savings plan. The staff were at the fair to promote a scholarship account giveaway and educate the public about the state’s 529 program. My spouse and I strongly desired to do something but weren’t quite ready to commit to a savings tool. We were trepidatious about starting a 529 account and overwhelmed by the jargon, the risks, and frankly, by the feeling that we may be locked into something that didn’t give us flexibility and liquidity. That moment at the state fair provided us with a person to answer our questions, allay our fears, and coach us in taking the first steps to start a long engagement with 529s.
That was nearly 15 years ago. I am happy to report that our family’s relationship with the 529 industry has deepened and developed into a beautiful partnership. And now, with time in the rearview mirror and having learned so much more since taking the helm of Alaska 529 education savings programs, I say, “What’s NOT to love about 529s?!”
Here’s what I love about 529s:
- You can use your 529 accounts tax-free for education expenses wherever your loved one’s path takes them, including K-12 tuition, apprenticeships, vocational school, college, graduate school, loan repayment, and continuing education.
- Most recently, congress added tax-free Roth IRA rollover contributions up to $35,000 if your account has been open for at least 15 years.
- 529 accounts are flexible and can be used for SO many options.
- Family and friends can gift education funds, which not only makes gift-giving easy but also meaningful.
- With direct deposit contribution options, you can set it and forget it, making saving in a 529 something you don’t have to worry about each paycheck.
- Most 529 accounts can be started with a small contribution, and many plans have incentives to encourage new accounts!
What I love most about my 529 plan is that it offers me an opportunity to reduce the worry of debt, set my savings aspirations, and have realistic conversations with my kids about what we can afford because we saved.
There is, indeed, a lot to love about 529 plans.
About the author:
Lael M. Oldmixon, M.Ed. , is the Executive Director of the Education Trust of Alaska, which offers Alaska’s three 529 plans, Alaska 529, the T. Rowe Price College Savings Plan, and the John Hancock Freedom 529. She lives in Alaska with her spouse, two children, and two dogs.