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Anyone can enroll and contribute to a T. Rowe Price College Savings Plan account. Whether you’re a grandparent, family member, or friend, it’s a great way to save for a child’s education. You can open an account of your own or make a gift contribution to any child’s college savings plan account.
There are no limits on age, income, or state of residency. And you can invest any amount up to the account balance maximum of $475,000. The gift of education is the perfect present for every child’s future.
Contributing to a 529 college savings plan account can be one of the most valuable gifts anyone can give. The T. Rowe Price College Savings Plan lets you help with some, most, or all of a child’s higher education costs.
Whether you’re a member of the family or a friend, you can start a 529 college savings plan account for a child’s education even before he or she is born. We’ve made it easy to open an account in the parent’s name, and once the baby arrives, you can transfer the beneficiary. Although college may seem far away, opening a T. Rowe Price College Savings Plan account puts the power of time and earnings potential, on your side.
Traditionally, the maximum amount you can gift in a year, without gift taxes, is $15,000. But with a 529 plan, you can front-load your contribution, allowing you to contribute up to $75,000 (or $150,000 for a married couple) into a 529 plan without paying extra gift taxes. You’ll give a gift that can help support their future higher education goals and aspirations. (Additional gifts you make to the same child during the five-year period may be subject to gift taxes. Speak with a knowledgeable tax professional for details.)
You can significantly reduce the value of your taxable estate by funding a 529 plan, since when you contribute to a child’s 529 plan account, the contributions and earnings are removed from your taxable estate and considered a gift to the child. However, you remain in control of the assets.
Here’s how it works. You contribute to an account that you control on behalf of a specific beneficiary. Any growth is tax-deferred and you can withdraw the money tax-free—as long as it’s used to pay qualified higher education expenses at any eligible college, graduate, or vocational school. What's more, the assets can be used for tuition at K-12 public, private, or religious schools.
As the account holder, you will be able to:
Here are just some of the advantages to our 529 plan:
The Education Planning Center is an online tool that makes it easy to see if you're on track with your savings goals, and provides age-specific passports from birth to graduation, and information on financial aid, scholarships, and grants.