Why Our 529 Plan?

You've taken the first step toward your savings goals. Saving for college, graduate, vocational school, or even K-12 public, private, or religious schools is more affordable with the tax-advantaged benefits offered by the T. Rowe Price College Savings Plan.

What Is a 529 Plan?

A 529 plan is a tax-advantaged way for families to save money for education-related expenses. You make contributions to your plan using after-tax dollars, but earnings are tax-deferred while invested and tax-free when used for qualified higher educational expenses such as tuition, fees, room and board, books, supplies, computer technology, and equipment as well as certain expenses for special needs students. With the tax reform measures of 2017, 529 plans can also be used to cover certain tuition expenses at K-12 public, private, and religious schools.1 The “529" refers to the section of the Internal Revenue Code that created these college savings plans.

Saving Actually Saves You Money

The T. Rowe Price College Savings Plan

Our 529 plan is an excellent way to help your child, grandchild, or loved one save for college or K-12 tuition expenses. Here’s how it works. You contribute to an account that you control on behalf of a specific beneficiary. You can withdraw the money tax-free anytime—as long as it’s used to pay qualified educational expenses at any eligible private or public college, university, graduate, or vocational school anywhere in the U.S.2 The 2017 tax reform measures expanded the use of 529 college savings plans to save for tuition expenses at K-12 private, public, and religious schools. Learn more about using a T. Rowe Price College Savings Plan account to save for K-12.

As an added benefit, account holders may be eligible for a state income tax deduction dependent on their state of residence. For those that reside in tax parity states such as Arizona, Kansas, Maine, Minnesota, Missouri, Montana, and Pennsylvania, contributions to any 529 plan are eligible for the state's income tax deduction. Consult your tax professional for more information.

Benefits of the T. Rowe Price College Savings Plan

It’s your money. You can use it whenever and however you want.

You always have access to the savings in your account for anything that life throws your way. Flexibility like this is why our plan suits nearly every budget or savings goal.

  • Transfer beneficiaries without penalty
  • No time restrictions on your account
  • Increase or decrease contributions
  • Your contributions to the plan are never taxed or penalized
  • No annual account fee


Investing is easy and affordable with portfolios designed to help you meet your college savings goals.

Based on the year your child will enter college, our Enrollment-Based Portfolios automatically adjust to a more conservative strategy in an effort to reduce risk as that date nears. Our Static Portfolios offer a fixed strategy, which means the underlying allocation does not change over time.

No matter what option you determine is best for you and your family, it takes only $50 a month to get started.

  • Enrollment-Based Portfolios
  • Static Portfolios

Anyone can enroll and contribute to the T. Rowe Price College Savings Plan.

It’s a great way to save for college whether you’re a grandparent, family member, or family friend. There are no limits on age, income, or relationship with the beneficiary. And you can invest any amount up to the account balance maximum of $475,000 per beneficiary.

And if you’d rather not open an account of your own, you can make a gift contribution to any child’s college savings plan with the GoTuition gifting portal.

The gift of education is the perfect present for every child’s future.

A gift they'll never outgrow.

They say it takes a village to raise a child. Well, the same can be said about sending your child to college. When you open a T. Rowe Price College Savings Plan you have the added benefit of enrolling in the GoTuition gifting portal. It's an online tool that makes it easy and more comfortable for you to ask friends and family to contribute to your child's 529 plan in lieu of gifts for traditional celebrations like graduations, holidays, and birthdays.

A passport to education from crawlers to scholars.

With all the information out there, planning and preparing for your child’s higher education is no easy task. The Education Planning Center is an online tool that makes it easy to see if you're on track with your savings goals, provides age-specific passports from birth to graduation, and information on financial aid, scholarships, and grants. Best of all, with the Education Planning Center dashboard, you can view the information for all your children in one place for a constant, focused view of your savings progress.

Available nationwide, our college savings plan is designed to keep your child’s future options open.

What’s more, assets in the plan can be used at nearly every private or public college, university, graduate school, or vocational  school in the U.S. It covers qualified expenses such as tuition, fees, room and board, books, supplies, computer technology, and equipment.

Effective January 1, 2018, the assets in the plan can also be used to cover tuition expenses (up to $10,000 per student per year) for K-12 public, private, and religious schools.1

As an added benefit for those interested in attending the University of Alaska, participants with an active account for two or more years may be eligible for resident tuition rates without regard to residency.

Getting started is easy.

Opening a T. Rowe Price College Savings Plan account is the first step to helping make higher education more affordable for a child. Getting started is easy. Open your college savings plan account today with as little as $50 a month or a $250 initial contribution. The sooner you get started, the more you can potentially save.

Test Your Knowledge

Are you a 529 plan genius? Test your 529 plan knowledge.

Alternative Investment Options

In addition to a 529 college savings plan, you can consider a few other college funding strategies to help pay for qualified higher education costs.

GoTuition is a trademark of T. Rowe Price Group, Inc.

The availability of tax benefits may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions, or other factors as applicable

529 plans vary from state to state, and each has somewhat different costs, investment options, and tax incentives. In addition, an account holder may have limited investment options, depending on the particulars of the plan you select. When choosing the plan that works for your goal, compare the features of your state’s 529 plan with others to weigh the plan benefits.

1While distributions to cover K-12 tuition are tax-free on the federal level, state tax treatment will vary, and you should check with your tax professional for details.

2Earnings from a nonqualified distribution are subject to income taxes plus a 10% penalty tax. State tax treatment varies. Tax benefits may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions, and other factors, as applicable.