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Schwab 529 Plan

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Education Savings Account Custodial Account

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Invest for a college education with a 529 plan

A 529 plan is an investment account specifically for college savings.
Anyone can open and contribute to the account, which can be used

Need assistance?

Call 866-663-5247 to speak with a Schwab Investment Professional or email us.

Open a Schwab 529 Plan

Learn more about college savings.

Our college savings webinar can help you get started.

to attend college. The beneficiary of the account can be changed at any time. 529 plans also offer tax advantages over other types of accounts. Although the contributions you make are after-tax dollars, your investments grow tax deferred—potentially boosting your investment growth.

The Schwab 529 Plan provides significant tax advantages and other benefits:

Account earnings can grow tax-deferred.
Tax-free withdrawals when the money is used for qualified education expenses, such as tuition, fees, books, room and board.¹
Higher contribution amounts than other types of college savings plans—up to $290,000 per beneficiary.
No gift tax incurred for contributions up to $60,000 ($120,000 per couple) for each beneficiary in a single year.²
Potential for growth and diversification with professionally managed portfolios from Schwab and other fund companies.
Preserve potential financial aid benefit only 5.6% of the account’s value is considered parental assets.
Residents of any state eligible to invest in the plan. State tax benefits apply for taxpayers in Kansas, the plan's state sponsor.

Learn more about getting started and investing in the Schwab 529 Plan, or compare the plan to other Schwab college savings accounts.

Ready to start saving with a 529 plan? Apply Online in minutes or download an application.

Facts and fees
Minimum to open	$1,000 Waived if you establish an automatic contribution of at least $50 per month.³
Account maintenance fee	$0 fee (effective 2008)
Portfolio fee	0.65-1.36%
Contribution limit	$290,000⁴

See the Schwab 529 Guide and Participation Agreement for more details.

1. The earnings portion of a non-qualified withdrawal is subject to federal and state income tax and a 10% penalty. State tax treatment of earnings may vary. Check with your tax advisor for rules on your state's tax treatment. The availability of tax or other benefits may be conditioned on meeting certain requirement such as residency, purpose for or timing of distribution, or other factors.
2. To qualify for the special gift tax exclusion, you need to file a gift tax return to treat the gift as if it were made in equal payments over five years. To avoid gift tax, you should make no additional gifts to the beneficiary during those five years.
3. Minimum to open an account for Kansas taxpayers is $250 or waived with automatic contributions of at least $25 per month.
4. The limit is reached when the total value of all accounts for one beneficiary reaches $290,000 through a combination of contributions and account appreciation.

Before investing, carefully consider the plan's investment objectives, risks, charges and expenses. This information and more about the plans can be found in the Schwab 529 Guide and Participation Agreement available from Charles Schwab & Co., Inc., and should be read carefully before investing. If you are not a Kansas taxpayer, consider before investing whether your or the beneficiary's home state offers a 529 plan that provides its taxpayers with state tax and other benefits not available through this plan. As with any investment, it is possible to lose money by investing in this plan.

The Schwab 529 College Savings Plan is available through Charles Schwab & Co., Inc., and is managed by American Century Investment Management, Inc. The Plan was created by the Kansas State Legislature under the provisions of Section 529 of the Internal Revenue Code and is administered by Kansas State Treasurer Lynn Jenkins, CPA. Notice: Accounts established under the Schwab 529 Plan and their earnings are neither insured nor guaranteed by the State of Kansas, the Kansas State Treasurer, American Century Investments or Charles Schwab & Co., Inc. Accounts established under the Schwab 529 Plan are domiciled at American Century Investments and not Schwab.

American Century Investments® receives remuneration from fund companies, including PIMCO Funds, American Beacon Funds, Metropolitan West Asset Management, and Baron Funds® for recordkeeping, shareholder services and other administrative services associated with funds held in the Schwab 529 Plan portfolios.

American Century Investment Services, Inc., Distributor and Underwriter.

(0807-6717)