The benefits of a 529 account can help make your child's future brighter
Opening a 529 college savings account can be a smart way to save for your child's higher education.
The tax advantages, low fees and flexibility of our 529 account allows you to support your child's dreams for their future. Plus, you can easily invite family and friends to join the savings journey with Ugift®.
Remember: Every dollar saved today may be one less dollar borrowed in the future.
Tax-advantaged growth potential
You could save more with a WA529 Invest account. Get tax-deferred growth and 100% tax-free withdrawals on qualified expenses.
Limitations apply.1
How to maintain more of your potential growth
This chart illustrates the hypothetical growth of an initial $2,000 investment and a monthly $200 contribution over 18 years in a taxable account vs. a tax-deferred account, assuming a 7.28% annual return. Based on past performance and does not predict or guarantee future results. Click here for chart assumptions.
Taxable account at 18 Years Total: $75,498.91
100% tax-deferred account at 18 Years Total: $93,431.79
- Amount of taxes that could be saved: $17,932.88
Read about material differences between taxable investments and tax-deferred investments.
You have options for how you save and use your savings
Low fees
There are no sales charges, startup fees or maintenance fees associated with WA529 Invest accounts. That could mean more money for you to put toward your savings.2
Flexibility
Use savings for qualified education costs at eligible institutions in the U.S. or abroad—including tuition, housing, books and more. Unused funds never expire and can be used at a later time, or they can be transferred to an eligible family member or a Roth IRA (subject to rollover rules and limits).3
Investment options
Our experienced investment team provides access to diverse investment options to align with your investment strategy and preferred level of involvement all while keeping costs low.
Read more about investment options.
Strategic savings
Saving for education can feel overwhelming, but we're here to help. See how your contributions can add up with our tools designed to track your progress and highlight the impact of compound growth.
Learn how our 529 works.
Keep track of your education savings on the go
Open and manage your 529 account with the ReadySave™ 529 app.
- Monitor your savings progress and track your goals
- Check your account balance or investment allocations
- Easily make one-time or recurring contributions
- Invite family and friends to contribute with Ugift®
Have more questions about WA529 Invest benefits?
If your child ends up not needing the funds for college, you always have multiple options for your money:
- Your funds can be used to pay for a variety of eligible education expenses, including public or private colleges, universities, community colleges, professional and vocational schools, certain apprenticeship expenses or postgraduate programs in the United States—and even some schools abroad.1
- Your 529 can be used for student loan repayment up to a $10,000 lifetime limit per individual.1
- Pay for K-12 qualified expenses - up to $10,000 annually can be used per student at a public, private, or religious elementary, middle, or high school (the limit will increase to $20,000 beginning January 1, 2026). Qualified education expenses include curriculum, instructional materials, tutoring by approved professionals, standardized test and dual enrollment fees, and licensed educational therapies for students with disabilities. Click here for more information on recent changes to qualified expenses.1
- You can transfer the funds to another eligible beneficiary, such as another child, a grandchild or yourself.
- If you just want the money back, you can withdraw the funds at any time. If funds are withdrawn for a purpose other than qualified higher education expenses, the earnings portion of the withdrawal is subject to federal and applicable state taxes plus a 10% additional federal tax on earnings (known as the “Federal Penalty Tax”). See the Program Details Booklet for more information and exceptions.
- Roll over funds to a Roth IRA. Limitations apply.2
- Pay for qualified expenses when enrolled in a recognized postsecondary credentialing program. Click here for more information on recent changes to qualified expenses.
- Or you can always wait because the funds never expire, and often the choice to go to school is a delayed decision. So if your child changes their mind down the road, your savings will still be available.
Footnotes
- 1Withdrawals for qualified expenses at K-12 public, private, or religious schools, registered apprenticeship programs, recognized postsecondary credentialing programs, and student loan repayment can be withdrawn free from federal income tax. State tax treatment varies. You should talk to a qualified professional about how tax provisions affect your circumstances.↩
- 2Rollovers are permitted from an account to a Roth IRA without incurring federal tax penalties. State tax treatment of a rollover from a 529 plan into a Roth IRA is determined by the state where you file state income tax. There are conditions that must be met, including the 529 plan must have been in existence for at least 15 years.
You should talk to a qualified professional about how tax provisions affect your circumstances.↩
Your contributions will always be yours, and you do not need to be a resident of Washington to open, contribute to or use a WA529 Invest account. Your account can also be used for a range of qualified expenses in state, out of state and abroad. If you move to another state, you can keep your money invested and continue making contributions to your WA529 Invest account—no problem!
Assets in a parent-owned 529 account have less of an impact on financial aid than some other savings methods. The Student Aid Index (SAI), formally known as Expected Family Contribution (EFC), calculations for financial aid generally factor parent assets outside of retirement savings at approximately 5%, whereas student assets are generally factored in at 20% or more. Therefore, a parent-owned 529 account may have less of an impact on financial aid eligibility than assets owned by the student.1
Footnotes
- 1The treatment of investments in a 529 savings plan varies by school. Assets are typically treated as the account holder's and not the student's. (Student assets are generally assessed at 20%, whereas parental assets are generally assessed at 5.6%.) Any investments, including those in 529 accounts, may affect the student's eligibility to get financial aid based on need. You should check with the schools you are considering regarding this issue.↩
A Washington state plan has been the preferred choice for thousands of families. With an established history, WA529 Invest has helped more than 26,000 students save for higher education.1 The Washington Student Achievent Councel with oversight from the Committee on Advanced Tuition Payment and College Savings (WA529 Committee) selected TIAA-CREF Tuition Financing, Inc. (TFI) as the Program Manager.
Footnotes
- 1Based on statistics provided as of 12/31/2024.↩
