Open a T. Rowe Price Education Savings Account today and bring your children one step closer to meeting their education goals.
Qualified distributions from ESAs are free from federal taxes and can be used for elementary and secondary school expenses (grades K–12), as well as college expenses.
You can contribute up to $2,000 per year for each beneficiary if your adjusted gross income is less than $190,000 for married couples filing jointly or $95,000 for single taxpayers (reduced contributions are still allowed for incomes up to $220,000 for married couples and $110,000 for individuals).
Contributions to an ESA are not tax deductible, but any growth is tax-deferred and distributions are potentially tax-free when used for qualified educational expenses.
Choose from over 60 no–load T. Rowe Price mutual funds to build your educational savings investment portfolio.
We offer funds with no loads or sales commissions, and we keep our mutual fund expenses low so more of your money stays at work.
You can open a T. Rowe Price ESA with as little as $50 per month using our Automatic Asset Builder Service. Otherwise, the minimum initial contribution is $1,000 per mutual fund.
| Potential Growth of an Education Savings Account | ||||||
| Years Until Child Enters College | 1 | 2 | 3 | 4 | 5 | 6 |
| $2,000 Per Year at 8% Annual Return | $2,160 | $4,493 | $7,012 | $9,733 | $12,672 | $15,846 |
| Years Until Child Enters College | 7 | 8 | 9 | 10 | 11 | 12 |
| $2,000 Per Year at 8% Annual Return | $19,273 | $22,975 | $26,973 | $31,291 | $35,954 | $40,991 |
| Years Until Child Enters College | 13 | 14 | 15 | 16 | 17 | 18 |
| $2,000 Per Year at 8% Annual Return | $46,430 | $52,304 | $58,649 | $65,500 | $72,900 | $80,893 |
Contributions to Education Savings Accounts for a tax year can be made until the tax return due date (generally April 15), not including extensions.
Our College Planning section offers a College Savings Plan Comparison Table that lets you review your college choices side by side.
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