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Invest in the Newest Generation

Help Your Grandchildren Reach Their Highest Potential

It's natural to want to see a new generation succeed in their personal and professional lives. Provide the foundation for a lifetime of learning with the T. Rowe Price College Savings Plan.

Our plan offers many benefits, including:

Financial control

You—not the beneficiary—are in control of the assets, ensuring that the money will be used for its intended education purpose. You can designate a successor account holder as well.

 

Tax-free earning potential

You'll have tax-free earnings potential for qualified education expenses, such as tuition and room and board. This helps put more of your money toward college and less toward taxes.

Gift tax advantages

During tax year 2023, the maximum amount you can gift in a year without having to pay gift taxes is $17,000. However, with a 529 plan, you can contribute up to $85,000 (or $170,000 if you are a married couple filing jointly) and average the gift over five years without paying gift taxes.1 Future years may differ.

Start early

Did you know that you can open a T. Rowe Price College Savings Plan account even before your grandchild is born? We've made it easy to open an account in your name, and then once the baby arrives, you can change the beneficiary. In most cases, the process is tax-free.1 It's that simple.

Estate planning

You can significantly reduce the value of your taxable estate by funding a 529 plan. When you contribute to your grandchild's account, the contributions are (with some exceptions) removed from your taxable estate and considered a gift to the grandchild, with the additional gift tax advantages described above.1

Experience

T. Rowe Price draws on 80 years of investment management expertise and has been helping families save for college since 2001. Our plan has been recognized as a top performer with a "Silver" rating from Morningstar in 2022.

Study nationwide

Savings can be used at nearly any college in the country, including trade and technical schools, and even for apprenticeships.

Save for K–12

You can take distributions of up to $10,000 per beneficiary each year for K–12 tuition at private, public, and religious schools.3 For more information, see approved uses.

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Do you already have a 529 plan? You can roll over funds from your current 529 into the T. Rowe Price College Savings Plan.

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Establish Savings Goals

Use our T. Rowe Price College Savings Calculator to determine how much you and your family might need to save for your grandchildren's future education expenses.

Calculate Your Costs
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Gift With GoTuition®

If your grandchild already has a T. Rowe Price College Savings Plan account, you can contribute directly to their account with the GoTuition gifting portal.

Learn More

Frequently Asked Questions

Can the same person be named as beneficiary on more than one account?

 

Yes, multiple accounts can be opened for one beneficiary. For example, a parent and a grandparent can each open... 

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How much can I contribute to my beneficiary’s account(s)?

 

You can open an account with recurring contributions of $50 per month, or a minimum initial contribution of $250...

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See More Questions

 

 

 

Open a 529 Account Today

In just a few minutes, you can start saving for the future, giving your child the gift of opportunity.

Let's Get Started

Talk to a Specialist

Have questions? Our College Savings Specialists are here to help. Just give us a call at 800-369-3641.

Contact Us

Explore Other Investing Goals

Find a wide variety of T. Rowe Price investment products and services that were designed to help you reach your financial goals.

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The T. Rowe Price College Savings Plan is offered by the Education Trust of Alaska. You should compare this Plan with any 529 plan offered by your home state or your beneficiary’s home state and consider, before investing, any state tax or other state benefits, such as financial aid, scholarship funds, or protection from creditors that are only available for investments in the home state’s plan. Please read and/or download the Plan Disclosure Document, which includes investment objectives, risks, fees, charges and expenses, and other information that you should read and consider carefully before investing, or call 1-866-521-1894 to request a paper copy. For other important legal information, please read the Plan's Privacy Policy. T. Rowe Price Investment Services, Inc., Distributor/Underwriter.

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

1Gift and estate tax issues can be complex; see a tax professional to discuss your situation in detail.

2Morningstar analysts reviewed 54 plans for its 2022 ratings (11/2/22), of which 12 plans received a "Silver" rating. To determine a plan's rating, Morningstar's analysts organized their research around four key pillars: Process, People, Parent, and Price. Plans were then assigned forward-looking ratings of "Gold," "Silver," "Bronze," "Neutral," and "Negative." Each year, certain of the industry's smallest plans are not rated. Click here for additional information about Morningstar's methodology.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar analysts' current expectations about future events and, therefore, involve unknown risks and uncertainties that may cause Morningstar's expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees.

©2023 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

3While distributions from 529 college savings plans for elementary or secondary education tuition 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 advisor for additional information.

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