529 Plans by State 2022

Paying for college can be a struggle for anyone. With tuition costs of the rise, as well as other associated expenses including books, lab fees, and room and board, students and families across the nation are looking at ways to reduce this financial burden without having to turn to student loans. While grants and scholarships are always a great option, many families start saving for their children’s education through a 529 plan. Each state has its own plan which offers advantages to families who save for their children’s education. While this once just applied to colleges, the Tax Act of 2017 now allows contributions to be used toward primary and secondary school expenses.

Parents aren’t the only ones that can take advantage of a 529 plan. Grandparents, aunts, uncles, and others can contribute to a 529 plan to help cover educational expenses. There are two different types of plans to consider: 529 college savings plan that allow you to invest and withdraw tax-free to cover educational expenses, and prepaid plans that let you lock in current tuition rates for in-state public schools. Many states offer state income tax benefits when a person contributes to a state-sponsored plan. A handful of states even give tax benefits for plans from other states.

The states that offer tax benefits to in-state contributors for savings plans are:

The states that offer benefits for any state plan are: Arizona (Arizona Family College Savings Program), Kansas (Learning Quest 529 Education Savings Program), Missouri (MOST 529 College Savings Plan), Montana (Montana Family Education Savings Program), and Pennsylvania (PA 529).

The states that do not offer tax benefits for 529 plans are:

  • Alaska (University of Alaska College Savings Plan)
  • California (ScholarShare College Savings Plan)
  • Delaware (Delaware College Investment Plan)
  • Florida (Florida 529 Savings Plan)
  • Hawaii (Hawaii's College Savings Program)
  • Kentucky (Kentucky Education Savings Plan Trust)
  • Maine (NextGEN College Investing Plan)
  • Nevada (Nevada College Savings Plan)
  • Newhampshire (UNIQUE College Investing Plan)
  • New Jersey (NJ BEST College Savings Plan)
  • North Carolina (Carolina Foundation of North Carolina)
  • South Dakota (College Access 529)
  • Tennessee (TN Stars College Savings 529 Program)
  • Texas (Texas College Savings Plan)
  • Washington (DreamAhead College Investment Plan)

The minimum contribution varies by state, with the highest minimum contribution being $250. Other states have no minimum contributions. Those states are: Alabama, Florida, Illinois, Missouri, Nebraska, New York, Rhode Island, South Carolina, Utah, and West Virginia. Of all 50 states, Wyoming is the only one that doesn’t have a state plan.

529 Plans by State 2022