“An investment in knowledge pays the best interest.” — Benjamin Franklin
Built to Help You Fund the Future
A 529 plan is a specialized investment account designed to help families save for education. But it’s more than just a college savings tool — it’s a flexible, tax-advantaged way to support a child, grandchild, or even your own lifelong learning goals.
At Suttle Crossland, we help clients use 529 plans as part of a bigger strategy — one that considers tax efficiency, legacy planning, and the rising cost of education. Whether you’re saving for private school, undergraduate tuition, or advanced degrees, a 529 plan can offer powerful benefits when used thoughtfully.
These accounts are especially useful for families who want to gift with intention. You stay in control of the funds, can adjust the investment approach over time, and have the ability to change beneficiaries if a child earns a scholarship, decides on a different path, or doesn’t use the funds at all.
Why 529 Plans Are a Smart Planning Tool
Tax-Free Growth and Withdrawals
Earnings grow tax-deferred, and withdrawals are completely tax-free when used for qualified education expenses — including tuition, room and board, books, fees, and even computers. This makes every dollar you invest work harder over time.
You Stay in Control
The account owner — not the student — retains full control of the assets, including how and when the funds are used. You decide when to withdraw, how to invest, and who ultimately benefits from the account.
Portability and Flexibility
If the original beneficiary doesn’t need the funds, you can transfer the account to another qualifying family member — or, in some cases, roll unused funds into a Roth IRA. This flexibility helps you adapt without losing tax advantages.
High Contribution Limits
In 2025, you can contribute up to $19,000 per beneficiary without triggering gift tax reporting. Married couples can give $38,000. Using a special 5-year election, you can frontload up to $95,000 (or $190,000 jointly) in a single year.
Investment Choice
529 plans offer a wide range of investment options. At Suttle Crossland, we help you build a diversified portfolio using providers like Vanguard and Dimensional Funds, aligned with your time horizon and risk tolerance.
Estate and Legacy Planning Benefits
Contributions to a 529 plan are considered completed gifts, meaning they reduce your taxable estate — while still giving you control of the assets. It’s a powerful way to support education across generations.
More Than Just College Savings
529 plans have evolved. While they were originally designed to help families save for college, today’s rules allow for much broader use. Qualified expenses now include private K–12 tuition, registered apprenticeship programs, and even certain student loan repayments. Graduate school and professional degrees also qualify, making 529 plans a fit for more than just a traditional four-year path.
What surprises many people is how flexible these accounts can be later in life. With recent changes under SECURE 2.0, it’s now possible to roll over unused 529 funds into a Roth IRA under certain conditions — preserving the value for future retirement savings. Whether you’re supporting a child, grandchild, or planning for your own continuing education, a well-managed 529 plan offers more options than ever.
Choosing the Right Plan (and Sticking With It)
Not all 529 plans are created equal. Some come with high fees or limited investment options, while others offer low-cost portfolios from providers like Vanguard and Dimensional Funds. We help clients choose a plan that aligns with their goals — not just what’s available in their home state.
Tax benefits may also influence the decision. Many states offer deductions or credits for 529 contributions, though some only apply if you use the in-state plan. Others, like Arizona, offer tax breaks even for out-of-state plans. We’ll coordinate with your CPA to make sure you’re taking full advantage of what’s available.
Once the account is open, we’ll help design the investment approach — whether that’s a simple age-based portfolio or something more customized. And we’ll review it regularly to make sure it still fits your timeline and goals. Like any other account we manage, a 529 shouldn’t be set and forgotten.
Built to Handle Life’s Curveballs
Education planning is never one-size-fits-all — and neither is a 529. Children change their minds. Scholarships happen. Priorities shift. That’s why we structure these accounts with flexibility in mind.
If a child doesn’t use the full balance, the funds can often be reassigned to a sibling, another family member, or even back to you. The new Roth IRA rollover rule opens up additional possibilities for long-term tax-advantaged growth. And in some families, 529 plans are used as part of a legacy strategy — allowing grandparents to reduce their taxable estate while setting aside resources for future generations.
When the unexpected happens, we’ll help you adjust without losing sight of the bigger picture.
Frequently Asked Questions
A 529 plan can be used for far more than just college tuition. Under current rules, you can withdraw up to $10,000 per year per student for tuition at K–12 public, private, or religious schools. That means parents who are thinking ahead for private elementary or high school expenses may find a 529 to be a helpful short- and long-term tool.
Beyond K–12, the plan covers qualified expenses at most accredited colleges, universities, and graduate programs, including vocational schools and even some international institutions. You can also use 529 funds for registered apprenticeship programs that meet U.S. Department of Labor criteria. Expenses like tuition, required books, supplies, and equipment are all considered qualified, and in some cases, even student loan repayment (up to $10,000 per beneficiary) qualifies.
One of the biggest concerns families have is, “What if my child doesn’t go to college?” Fortunately, 529 plans are flexible. If the original beneficiary doesn’t use the funds, you can change the beneficiary to another qualifying family member — a sibling, cousin, spouse, grandchild, or even yourself — without triggering taxes or penalties.
And thanks to the SECURE 2.0 Act, you now have the option to roll over up to $35,000 of unused 529 funds into a Roth IRA for the beneficiary, assuming the account has been open for at least 15 years and other eligibility requirements are met. This gives your education dollars a second life as retirement savings, all while maintaining their tax-advantaged status.
In a worst-case scenario — if none of the funds are used for qualified expenses and you withdraw them anyway — you’ll pay income tax on the earnings and a 10% penalty. But we’ll work with you to find a more strategic solution before it comes to that.
Yes — and they can be substantial. The main federal benefit is that your investments grow tax-deferred, and withdrawals used for qualified education expenses are completely tax-free. That includes tuition, books, required technology, and room and board if your student is enrolled at least half-time.
In addition, many states offer a tax deduction or credit for contributions. The catch? Some states require you to use their own 529 plan to qualify, while others (like Arizona) offer tax benefits regardless of which plan you use. We coordinate with your CPA to make sure you’re getting any state-level benefits available to you, and we’ll help you avoid common mistakes like overfunding or misreporting contributions.
It’s also worth noting that contributions to a 529 plan are considered completed gifts, which may help with estate planning strategies — especially when combined with the 5-year election.
There’s no formal IRS-imposed limit on how much you can contribute to a 529 plan, but there are two important guidelines:
First, for gift tax purposes, you can contribute up to $19,000 per year per beneficiary in 2025 without needing to file a gift tax return. Married couples can give $38,000 total. If you want to contribute more, you can use a special 5-year election that allows you to frontload up to $95,000 per person (or $190,000 for a couple) in a single year and treat it as if it were spread out over five years.
Second, each state sets a lifetime contribution limit for 529 plans — typically between $235,000 and $550,000 depending on the plan. Once a beneficiary’s account reaches that threshold, additional contributions are no longer allowed, although the account can continue to grow.
We’ll help you plan your contributions around your gifting goals, tax situation, and long-term education funding needs.
Yes. A 529 plan is an investment account, not a guaranteed savings product — which means it can fluctuate based on market performance. Like other long-term investment vehicles, the value of your account can go up or down depending on the portfolio you choose and how the market behaves.
To help manage that risk, many plans offer age-based investment options that automatically shift to more conservative holdings as the beneficiary approaches college age. For clients who prefer a hands-on approach, we offer custom investment strategies using low-cost, diversified funds from providers like Vanguard and Dimensional.
As with any investment account, staying on track requires periodic reviews and adjustments. That’s why we monitor your 529 plan as part of your broader investment strategy — to help you stay aligned with your timeline and goals.
Yes, and in some situations, it’s actually a smart move. Parents often open one 529 plan per child to keep funding and withdrawals organized. Grandparents or other relatives may choose to open separate accounts as well, depending on their gifting strategy, estate planning goals, or desire to retain control of how the funds are used.
Keep in mind that contribution limits apply per beneficiary, not per account, and multiple accounts can exist across different states or even within the same family. We’ll help you decide whether it makes sense to consolidate accounts or keep them separate — and we’ll manage them all in the context of your overall financial plan.
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