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Using your 529 Savings

529 Plans are flexible and accessible.

When your child is ready to take the next step, The Education Plan® will be ready too. You can use your college savings plan for any qualified higher education expense - tuition, room and board, fees, books, computers, and more.

The Education Plan 529 is flexible. Use your 529 Plan savings for more than traditional 4-year college expenses, including:

  • Tuition, room and board, books, computers and fees
  • Public and private universities, community college, vocational school, graduate and professional programs (including medical and law schools)
  • Any accredited public or private post-secondary school in the U.S. and some schools abroad
  • Extra expenses for special needs students including: a classroom aide, wheelchair, special technology and remedial tutoring. 
  • K-12 tuition or transfer to an ABLE account. When you need to withdraw savings to pay for tuition or other qualified expenses, just fill out a simple form and the payment will be made to the educational institution, account owner or beneficiary as you direct.

What if….?

The future can’t be predicted. That’s why the flexibility of a 529 Plan is so important.

What if I need my 529 savings before my child goes to college?

You can take the savings out of The Education Plan any time and for any reason. However, if the money is not used to pay for qualified education expenses, earnings may be subject to federal income taxes and any applicable state income tax, as well as an additional 10% federal tax penalty on earnings.

What if my child receives a loan or scholarship?

Loans and scholarships usually don’t cover all education costs. You can use your 529 savings to pay for qualified expenses that aren’t covered by other sources.

What if my child doesn’t go to college?

529 savings can be used at accredited technical and vocational schools too, so your child isn’t limited to a traditional four-year college.

If your child doesn’t use the 529 Plan savings, you have three options: you can keep the money in the account in case your child changes his or her mind in the future, change the account beneficiary or make a nonqualified withdrawal.

The “lifetime” of a 529 plan

  • Open an account with with as little as $1
  • Your money is invested based on the investment options you choose
  • You continue to make regular contributions
  • All contributions and earnings in your 529 account continue to be reinvested in the plan
  • The savings in your 529 Plan grow over time
  • When your child is ready for college, withdraw 529 plan savings to pay for qualified expenses

Watch the Webinar

Learn more about the Education Plan and how it can help your family save for higher education with Ted Miller, Executive Director of the Education Trust Board of New Mexico, and Carolyn Fittipaldi, Marketing Director at The Education Plan, in this online video presentation.

1 The Plan is neither FDIC insured nor guaranteed and may lose value.
2 When withdrawals are used for other purposes, the earnings portion of the withdrawal is subject to federal income taxes and any applicable state income tax, as well as an additional 10% federal tax and the recapture of all previous New Mexico tax deductions taken for contributions to an account.