Putting Money in a 529


Putting Money in a 529


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You can start saving today with no minimum contribution.

Opening a 529 account and making your first contribution is easy. You can open an account online or fill out a paper application. In either case, it only takes about 15 minutes. If you would like to discuss the account opening process just call us at 1-877-337-5268.

Who can open or contribute to a 529 Plan? Anyone!

  • Parents
  • Grandparents, relatives and friends
  • Anyone who wants to support a loved one’s future education

Family members can open 529 accounts for their relatives. With a few basic facts about the beneficiary, they canget started.

The Education Plan® is flexible too. If one child in a family doesn’t end up needing 529 savings, the money can typically be transferred to another eligible family member without tax consequences.

Before you open an account, decide how you want to contribute. You have a lot of options:

  • Send a check – just write a check and mail it with a contribution coupon and we’ll deposit the funds into your account. You can send checks as often as you like.
  • One-time electronic funds transfer – you can make a transfer from your bank account.
  • Automatic Investment Plan (AIP) – schedule recurring contributions from your bank account. It’s the easiest way to save. Set-up is simple.3
  • Payroll contribution – if your employer offers it, you can make a contribution to your 529 Plan directly from the pay you receive from your employment.
  • Rollover/transfer from another 529 Plan or Coverdell Education Savings Account/Qualified U.S. Savings Bond – transfer funds from other eligible accounts or investments. We’re happy to help

As your student grows, so could your 529 account

Money in a 529 Plan has tax advantages, is professionally managed, and may benefit from the power of compounded growth. Compounding means that any income earned on your investments in the account has the potential to generate additional income in the next year and each year thereafter. Earnings are automatically reinvested and help the account grow faster.

The Power of Compounding Growth

This hypothetical example assumes a 5% annual rate of return on a $25 monthly contribution into a 529 college savings account over 18 years (total lifetime contribution of $5,400). When compounded every year at the same rate of return, the account could grow by 64% and be worth $8,730. The extra $3,330 is the benefit of compounded growth. This chart is for illustrative purposes only and does not represent the performance of any specific account or investment and does not reflect plan costs or sales charges that may apply. If such costs or sales charges had been taken into account, returns would have been lower.

Systematic investing does not assure a profit or protect against loss in declining markets. Before investing, investors should evaluate their long-term financial ability to participate in such a plan.


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The Education Plan® and The Education Plan® Logo are registered trademarks of The Education Trust Board of New Mexico used under license.

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For more information about The Education Plan, call 1.877.337.5268 or view the Plan Description and Participation Agreement, which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing.

Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You also should consult a financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 plan(s), or any other 529 plan, to learn more about those plan’s features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

The Education Plan is administered by The Education Trust Board of New Mexico. Ascensus College Savings Recordkeeping Services, LLC, the Program Manager, and its affiliates, have overall responsibility for the day-today operations, including investment advisory, recordkeeping and administrative services. The Education Plan’s portfolios invest in: (i) mutual funds; (ii) exchange traded funds; and/or (iii) a funding agreement issued by New York Life. Investments in The Education Plan are not insured by the FDIC. Units of the portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns will vary depending upon the performance of the portfolios you choose. You could lose all or a portion of your money by investing in The Education Plan depending on market conditions. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences.

Ugift is a registered service mark of Ascensus Broker Dealer Services, LLC.

The Education Plan® and The Education Plan® Logo are registered trademarks of The Education Trust Board of New Mexico used under license.

All other marks are the exclusive property of their respective owners.

Not FDIC-Insured. No Bank, State or Federal Guarantee. May Lose Value.