College Savings Plans
With more than 80 years of financial experience, the experts at T. Rowe Price are focused and committed to helping you choose the right path for one of the most important investment decisions families face today.
Taking That First Step Toward Your Savings Goals
A 529 college savings plan is a tax-advantaged way to help families reach their education savings goals. Any earnings are tax-deferred while invested and tax-free when used to pay for qualified education expenses at any federally accredited college, technical or trade school, certified apprenticeship program, or for qualified higher education costs. Your savings can also be used for K-12 expenses at public, private, or religious schools, postsecondary credentialing, and for education loan repayment up to a $10,000 lifetime maximum per beneficiary.¹ After maintaining your account for at least 15 years, you may be able to roll over funds to a Roth IRA for the beneficiary, free from taxes or penalties.
Give your child a head start on saving for their future education with a 529 plan, which offers the potential of higher returns and tax-advantaged growth when compared with lower-yielding bank accounts.²
529 Plans Managed by T. Rowe Price
For over 20 years, T. Rowe Price has managed three 529 plans that have helped families save for a brighter future. To explore the 529 plan that’s right for you and your family, select from the three options below.
¹While distributions from 529 college savings plans for elementary or secondary education expenses are federally tax-free, state tax treatment will vary and could include state income taxes assessed, the recapture of previously deducted amounts from state taxes, and/or state-level penalties. You should consult with a tax or legal professional for additional information.
²Unlike a traditional bank account that offers Federal Deposit Insurance Corporation (FDIC) protection, investments in 529 plans are generally not guaranteed, and you could lose money, including your principal, by investing in them. There may be other material differences between savings accounts and 529 college savings plan accounts that should be considered prior to investing.
Be sure to review any 529 college savings plan offered by your home state or your beneficiary's home state, as there may be state tax or other state benefits, such as financial aid, scholarship funds, and protection from creditors that are only available for investments in the home state's plan. Be sure to read the college savings plan's disclosure document, which includes investment objectives, risks, fees, charges and expenses, and other information you should read and consider carefully before investing. Tax benefits may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions, or other factors as applicable.
T. Rowe Price Investment Services, Inc., Distributor/Underwriter
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