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Help Desk

Please contact us with questions, comments, feedback or concerns.

Standard U.S. mail:

The Education Plan
PO Box 219331
Kansas City, MO 64121-9331

Overnight Mail:

The Education Plan  
920 Main Street, Suite 900  
Kansas City, MO 64105-2017

Phone or Fax:

P: 1-877-337-5268
F: 1-617-559-8953 

Frequently Asked Questions

Select a topic to see frequently asked questions:

Beneficiary Questions

Who can be a beneficiary of an account in The Education Plan® ?

Any U.S. citizen or resident alien with a valid Social Security number or taxpayer identification number (TIN). For instance, you can set up an account for your child, grandchild, spouse or someone who is not related to you. If you are planning to attend college or graduate school, you can open an account for yourself.

Can a beneficiary have more than one account?

Yes, there can be more than one 529 account for a beneficiary. For example, you can have an account set up for your beneficiary. A grandparent, other family members or friends can open accounts for the same beneficiary.

How many beneficiaries can I have on an account?

You can only have one beneficiary on a 529 account. However, you can open individual accounts for as many beneficiaries as you would like.

Can I change the beneficiary on my The Education Plan® account?

Yes, you can typically change the designated beneficiary to another eligible family member without tax consequences. If the new beneficiary is not a member of the family of the old beneficiary, the change is treated as a nonqualified distribution to the account owner and may trigger a taxable event.

If my child is in high school is it too late to open an account?

No, you can open a 529 college savings account if your child is in high school since there are no restrictions on the age of the beneficiary.

What if my beneficiary receives a scholarship?

If your beneficiary receives a scholarship you have several options:

  • The funds in your 529 college savings account can be used to pay for remaining college costs
  • You also can change the beneficiary
  •  An amount equal to the scholarship can be withdrawn from the account

If you withdraw an amount less than or equal to the value of the scholarship from your account, the earnings on the amount you withdraw are subject to federal and state income taxes, but you will not be subject to the additional 10% federal tax penalty.

What if my beneficiary does not go to college?

As the account owner, you always have control of the account. If the beneficiary chooses not to attend college, you have three options:

  • Keep the funds in the account. Since there are no age restrictions on the account, it will be available in future years if the beneficiary changes his or her mind about school.
  • Change the beneficiary. You can change your beneficiary at any time, provided that your new beneficiary is a qualified family member. You should consult your tax advisor to determine whether this may create a taxable gift.
  • Make a nonqualified withdrawal. If you make a nonqualified withdrawal, earnings on the amount you withdraw are subject to state and federal income taxes as well as a 10% federal tax penalty.

What if the beneficiary becomes disabled or dies?

If the beneficiary becomes disabled or dies, you can change the beneficiary to another eligible beneficiary. Alternatively, the money may be refunded to the account owner. Earnings are subject to federal and state income taxes, but you will not be subject to the 10% federal tax penalty.

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Contributions and Withdrawals

Who can contribute to a The Education Plan® account?

Anyone can contribute to The Education Plan® account as long as the account hasn't reached its maximum contribution limit.

What is the minimum initial investment?

Open an account with as little as $1.

What's the maximum contribution limit?

The maximum aggregate account balance  is $500,000. Once this maximum is reached, no further contributions for the benefit of the same beneficiary will be allowed, although the account balance may continue to increase due to appreciation of its holdings.  This maximum contribution limit may be changed from time to time by the Board.

What if I need to make a withdrawal for non-higher education purposes?

You can take money from your account at any time. However, if the money is not used to pay for qualified higher education expenses, earnings will be subject to ordinary federal income tax as well as an additional 10% federal penalty tax and any applicable state income tax including recapture of previous deductions. There may be exceptions, please see The Plan Description and Participation Agreement for additional details, or discuss with your tax advisor.

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What is a 529 Plan?

A 529 Plan is a tax advantaged plan that is used to save for college expenses.

Can I use my 529 savings for K-12 tuition expenses?

Yes, up to $10,000 per year. State tax consequences are a matter of local law. New Mexico taxpayers, please see an important notice.

What is a beneficiary?

A beneficiary is an individual you have designated to receive the funds from the 529 account. The owner of the account can change the beneficiary at any time.

Can anyone open a The Education Plan® account?

Yes, any U.S. citizen or resident alien living in the US with a valid Social Security number or Taxpayer Identification Number (TIN) can open a 529 savings plan account, regardless of income level or state of residence.

What is the difference between an "account owner" and a "beneficiary"?

An account owner is the person who opens and controls the 529 account. The beneficiary is the person whose education expenses will be paid from the account. An account owner sets up the account on behalf of a beneficiary. An account owner can also be the beneficiary of a 529 Plan account.

What if I don't live in New Mexico?

As long as you reside in the US, you can participate and receive benefits (other than New Mexico state tax benefits) from The Education Plan.

Some states offer favorable tax treatment to their residents only if they invest in the state's own plan. Non-residents should consider whether their state offers its residents a 529 Plan with state tax advantages and should consult with their tax advisor about any state or local taxes.

Does the money have to be used at a college in New Mexico?

No, the money can be used at any accredited public or private post-secondary institution in the United States and abroad. This includes most two-year and four-year colleges and universities, vocational and technical schools, graduate schools, professional, medical and law schools.

Does my home state offer a similar 529 program?

Many states offer similar college savings programs. You should compare the benefits carefully before choosing a plan. Keep in mind that many plans offer additional state tax or other benefits only to residents of the state offering the plan.

Can I invest in more than one state's 529 college savings plan?

Yes, it is possible to have multiple 529 Plan accounts in different states.

Will a 529 Plan affect my child's ability to qualify for financial aid?

Since assets in 529 Plans are treated as assets of the account owner when determining eligibility for financial aid, the impact on a child's ability to get aid is lower than if the assets were the name of the child. However, certain exceptions apply.

How do I know which schools are eligible to use funds from a 529 Plan?

Most schools assigned a federal school code by the Department of Education are eligible. We suggest you perform a Federal School Code search and confirm with the school.

What are 529 Plan "qualified higher education expenses"?

Qualified higher education expenses include tuition, required fees, books, supplies, computers and necessary software and equipment required for attendance. Room and board expenses are also eligible when certain eligibility requirements are met. Also, the expenses that are necessary for attendance for a special-needs student are eligible.

Recent federal tax law changes permit the use of 529 savings for K-12 tuition or transfer to an ABLE account.

Can the money be used at a foreign college?

You can use a 529 Plan account to pay for qualified educational expenses at some foreign colleges. To find out which schools, do a Federal School search. Here’s another good resource with a list of schools where you can use 529 savings

What if I die while money is still in the account?

As an account owner you can name a "successor account owner."  This person that will take over the management of the account if the owner dies. However, if the account owner dies without naming a successor, the account will typically be transferred to the account owner's estate. Keep in mind the transfer of ownership after death varies from state to state.

How does The Education Plan® differ from a Coverdell Education Savings Account?

Coverdell Education Savings Accounts offer similar tax advantages but contributions are limited and may not be sufficient to adequately fund a college education. In addition, Coverdell accounts restrict who can contribute based on income levels.

Here’s another great resource for additional frequently asked questions about 529 college savings plans.

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How Do I

Open an account?

You can open an account in one of three ways:

Contribute to my account?

You can make a contribution any time online at My Accounts or by using the Account Features Form. Funds can automatically be transferred from your bank account on a regular basis using our Automatic Investment Plan (AIP).  If your employer allows it, you may make a contribution from payroll.

Withdraw money from my account?

You can request a withdrawal online at My Accounts. Payments can be made directly to the educational institution, account owner or beneficiary. For details, please check The Plan Description and Participation Agreement.

Make changes to my account?

In My Accounts you can:

  • Change Your Investment Options
  • Change Successor Account Owner
  • Establish, Change or Delete your Automatic Investment Plan (AIP)
  • Change Your Elected Investment Allocation
  • Change Address or Phone Numbers
  • Sign Up for eDelivery of account statements and Plan information
  • Add or Change Bank Account Information
  • Purchase, Redeem, or Exchange investments
  • Alternatively, you can use the Account Features Form to update your account
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Investment Options

What if I want to change my investment option?

Should your goals or needs change, you have the flexibility to rebalance your existing investment options to different portfolios available within the program. Under federal law you are able to make investment changes in each beneficiary's 529 account twice during the calendar year, or whenever you name a new beneficiary. See The Plan Description and Participation Agreement for details.

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Rollover and Transfer Questions

Can I open an account in The Education Plan® with money from my child's (UGMA/UTMA) account?

Yes, you can transfer funds from an UGMA/UTMA account into a 529 Plan. The assets must be first converted to cash, which may create taxable gains, and then invested into the 529 Plan account. Also, certain restrictions apply to custodial UGMA/UTMA 529 Plan accounts. Please see The Plan Description and Participation Agreement for more details. You should consult with a financial or tax advisor before moving the funds.

Can I roll over money from one 529 Plan to another 529 Plan?

Yes, you can roll over from one plan to another once per rolling twelve months. This will not incur taxes and penalties if the funds from the first account are deposited into the new account within 60 days of the distribution from the first account. States may recapture previous state income tax deductions when proceeds are rolled into another state's plan.

Can I transfer my child's existing Coverdell account into The Education Plan®?

Yes, you can transfer funds from a Coverdell account into The Education Plan®.

Can I transfer from my 529 savings to an able account?

Yes, up to $15,000 per year. State tax consequences are a matter of local law. New Mexico taxpayers, please see an important notice.

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Tax Benefit Questions

What are the tax benefits of the The Education Plan®

Tax benefits of 529 plans include tax-free growth of earnings in a plan and federal tax-free withdrawals as long as the funds are used for qualified higher education expenses.

Are plan contributions tax deductible in New Mexico?

Yes, your plan contributions are fully deductible from your New Mexico state taxable income for each beneficiary, when used for post-secondary education expenses. Contributions include the principal and earnings portion of amounts rolled over to a New Mexico approved Section 529 college savings plan account from a non-New Mexico approved Section 529 plan. However, the total deduction cannot exceed the cost of attendance at the applicable eligible higher education institutions as determined by the Board. State tax deductions are subject to recapture in certain instances; check with your tax professional and see The Plan Description and Participation Agreement for more details.

Can I claim a federal income tax deduction based on my contributions to my The Education Plan® account?

No, contributions to your The Education Plan® account are not eligible for federal income tax deduction.

Are withdrawals from a The Education Plan® account exempt from federal income tax?

Yes, as long as the funds are used for qualified higher education expenses.

What are the recent federal 529 tax changes and how do they affect my 529?

As a result of recent federal tax law changes, account owners may withdraw up to $10,000 for K-12 tuition expenses from a 529 college savings account free of federal taxes. This limitation applies on a per-student basis, rather than a per-account basis. Although an individual may be the designated beneficiary of multiple accounts, that individual may receive a maximum of $10,000 in distributions free of federal tax, regardless of whether the funds are distributed from multiple accounts.

The recent federal tax law changes also permit transfers from a 529 account to an account in a Qualified ABLE Program made before January 1, 2026, without subjecting the transferred amount to federal income tax on earnings, provided certain conditions are met. ABLE accounts are subject to an annual contribution limit (currently $15,000). Transfers from a 529 account which cause the ABLE account to exceed the $15,000 limit will be subject to federal tax.

How do the recent federal tax changes affect New Mexico account owners?

Despite the new federal law changes for tuition expenses for K-12 Schools, it is possible that such K-12 tuition expenses will not constitute Qualified Higher Education Expenses under the New Mexico tax code, thereby resulting in a recapture of any deduction related to amounts distributed for such K-12 tuition expenses.

In addition, amounts previously deducted for New Mexico income tax purposes will be recaptured if they are distributed from a New Mexico 529 plan account to a Qualified ABLE program, including the ABLE program offered in the State of New Mexico (notwithstanding that such a transfer is a Qualified Withdrawal for federal tax purposes).  Learn more about recent federal tax law changes

How does donating to a 529 account help my estate and legacy planning?

You may gift up to $15K per beneficiary per year without tax consequences. You can accelerate up to 5 years of gifting and gift as much as $75K per beneficiary in a single year.  You should consult a tax professional concerning estate and legacy planning.

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