Help your kids or grandkids prepare for tomorrow with a gift today.
The holidays are a time to celebrate the people we love and imagine what the future may hold for them. If you’re looking for a meaningful gift for your kids or grandkids, consider contributing to their education. A gift to a 529 plan today has the opportunity to grow over time, helping your family prepare for college and other educational paths.
There are several ways to save for a child’s education. Here’s how a 529 plan can bring together tax advantages, gifting opportunities, and flexibility to help support your family’s goals.
Tax efficiency and flexibility
A 529 plan offers tax-deferred growth and tax-free withdrawals1 for qualified education expenses, including tuition, room and board, books, and essential supplies such as computers. Its flexibility extends beyond college: savings can also help pay for graduate school, apprenticeships, professional credentials, and trade programs. Funds can also be used for K–12 expenses (up to $20,000 annually) and qualified student loan repayments (up to $10,000 lifetime).
Gifting and estate planning
A gift toward education can also be part of a broader plan for your family’s future. In 2026, the annual gift tax exclusion is $19,000 per individual or $38,000 for married couples. CollegeBound 529 offers the option to “superfund,” or accelerate five years’ worth of contributions—up to $95,000 per individual or $190,000 for married couples. With thoughtful planning, this approach can help families work toward education savings goals while supporting wealth transfer and estate-planning objectives.
There are no income limits for contributors, and CollegeBound 529 offers a contribution ceiling of $520,000 per beneficiary, giving families room to save for future education expenses.
Staying in control as plans change
A child’s plans may change, and CollegeBound 529 offers flexibility along the way. As the account owner, you—not the beneficiary—remain in control of the funds. If the intended student doesn’t use the savings, the funds can be transferred to another family member or rolled into a Roth IRA (up to $35,000 lifetime) without federal taxes or penalties, subject to holding and contribution limits.
Final thoughts
This holiday season, consider a gift that can be part of a loved one’s future. A contribution to CollegeBound 529 can help support their education and the opportunities ahead. With tax advantages and flexibility for different educational paths, it’s a thoughtful way to connect today’s generosity with tomorrow’s goals. Talk with your financial professional about how CollegeBound 529 may fit into your family’s education savings plans.
