Give their goals the start they deserve with a Schwab 529 Plan.

A 529 plan is a state-sponsored program that allows parents, relatives, and friends to invest in someone's education—including their own. All states and the District of Columbia offer some type of 529 plan. However, you don't have to live in a particular state to take advantage of its plan. 

You can use 529 plan funds for a variety of qualified education expenses.

The Schwab 529 Education Savings Plan is sponsored by the state of Kansas and administered by the Kansas State Treasurer.

Earnings in a 529 plan grow tax-deferred and withdrawals are free from federal income tax when used for qualified education expenses. Depending on where you live, your state may also offer a deduction or credit for contributions to a 529 plan.

While most states offer some type of 529 plan, there's no requirement that you pick your own state's plan. As a starting point, if your state of residence offers a state income tax deduction for 529 plan contributions made to your state-sponsored plan, it's often a good idea to look at your state's plan first. It's important to compare plans and make note of their differences. 

Some states, such as California, do not currently offer income tax deductions for plan contributions. In this case, California residents can shop for 529 plans nationwide without giving up any California state-income tax deductions because there are no California state income tax deductions for 529 plans. Accordingly, California residents may find that other states' plans may have lower costs or more attractive investment features. Some states, such as Texas and Florida, have no state income tax so they also would not offer state income tax deductions for 529 plan contributions. Similar to California residents, residents in Texas and Florida can also shop for 529 plans nationwide without giving up any state income tax deductions because Texas and Florida have no state income tax. Please consult your tax advisor for more information on which 529 investment makes the most sense for the state in which you reside. 

Keep in mind that your child doesn't have to go to school in the same state where his or her plan was established; the full value of the account can be used at any accredited college or university in the U.S. While certain 529 plans may restrict using the funds out of the state, you can use funds from the Schwab 529 Education Savings Plan in any state.

Yes. You can use funds from the Schwab 529 Education Savings Plan at any eligible college, university, trade school, or apprenticeship program nationwide.

The Schwab 529 Education Savings Plan portfolio composition: Each of the 529 Plan portfolios includes Schwab Affiliate funds as well as funds from other fund families. The Schwab 529 Plan employs multiple fund families to diversify across securities, industry sectors, and investment styles. 

Underlying Holdings of the Schwab 529 Education Savings Plan Portfolios 

The Schwab 529 Education Savings Plan offers several portfolios that use a variety of highly rated, professionally managed investments from the following fund companies:

• Charles Schwab & Co., Inc. ("Schwab")
   
• Dimensional Fund Advisors LP ("DFA")
   
• Dodge & Cox
   
• Franklin Templeton Fund Adviser, LLC
   
• T. Rowe Price Associates, Inc.
   
• The Vanguard Group, Inc.

The portfolio fee includes a plan management fee and state administrative fee plus underlying fund expenses. The total annual asset-based fee for the Schwab 529 Education Savings Plan ranges from 0.00%–0.56%, depending on the investment you select.

Learn more about the plan's investment performance: 

• Schwab 529 Monthly Report
   
• Schwab 529 Quarterly Report
   
• Schwab Annual Report

The current effective annual interest rate applicable to the TIAA Funding Agreement, to which the assets of the Principal Plus Interest Portfolio are allocated, is 3.50%, and is effective from March 1, 2026 until Feb 28, 2027.

Assets in your account can be used to pay for the Beneficiary's Qualified Education Expenses, which include:

• Tuition, fees, books, supplies, and equipment required for enrollment or attendance of a Beneficiary at an Eligible Educational Institution. 
   
• Expenses for housing and food (room and board) incurred by students who are enrolled at least half-time and subject to certain limitations. 
   
• Expenses for the purchase of computer or certain peripheral equipment, computer software, or internet access and related services if it is to be used primarily by the Beneficiary during any of the years the Beneficiary is enrolled at an Eligible Educational Institution. 
   
• Expenses for special needs services in the case of a special needs Beneficiary which are incurred in connection with such enrollment or attendance. 
   
• Tuition, fees, books, supplies, and equipment required for participation of the Beneficiary in an Apprenticeship Program. 
   
• Payments on Qualified Education Loans of the Beneficiary or a sibling of the Beneficiary, subject to a lifetime limit of $10,000 per individual. 
   
• Primary or Secondary School Expenses (up to the then-applicable limit). 
   
• Postsecondary Credentialing Expenses.

To transfer money from your bank account to your 529 account:

1. Log in to your Schwab 529.
2. Click the Contribution link.
3. Follow the instructions provided.

To transfer money from your Schwab brokerage account to your 529 account:

1. Log in to your Schwab brokerage account.
2. Choose your Schwab 529.
3. Click the Contribution link.
4. Follow the instructions provided. This process requires your 10-digit brokerage checking number.
5. If you do not have a checking feature on your Schwab brokerage account, you must link that account to your 529 using the 529 Money Link form.

Contributions may also be set up through a contributor's checking account Billpay system using the 529 account number and this address:

Schwab 529 Plan 
PO Box 2906 
Shawnee Mission, KS 66201-2906

Need assistance? Call the 529 team at 888-903-3863.

• If you have other Schwab accounts: www.schwab.com.
   
• If you don't have other Schwab accounts: www.schwab529plan.com/login.

Anyone can contribute—parents, grandparents, relatives, and even friends. 

You can typically contribute up to $19,000/year per beneficiary ($38,000 per couple) without potentially incurring a gift tax for 2026. 

Or "super fund" up to $95,000 ($190,000 for couples) by funding 5 years' worth of annual gifts into a single year.

Contributions limited by lifetime accumulation cap. Varies by state (generally within a range of $400,000–$550,000 per beneficiary).

Only the Account Owner can request a withdrawal from the Account at any time and from time to time. The Program Manager shall process each such request upon receipt of a withdrawal request completed online, by telephone, or in writing, in a form approved by and acceptable to the Program Manager. The Designated Beneficiary, unless he or she is also the Account Owner, cannot direct a withdrawal from the Account. The Account Owner may, subject to any restrictions imposed by the Program Manager, direct the Program Manager to distribute any withdrawals from the Account directly to any person, corporation, university, college, or any other entity. Anything herein to the contrary notwithstanding, the Program Manager is empowered to make a distribution absent such instruction from the Account Owner if directed to do so pursuant to a court order, and the Program Manager shall, in such event, incur no liability for acting in accordance with such court order.

In some cases, yes. You may be able to roll over up to a $35,000 lifetime maximum from a 529 plan into a Roth IRA for the same beneficiary. Annual rollover amounts generally cannot exceed the Roth IRA contribution limit for that year. The 529 plan must have been open for at least 15 years, and contributions (and associated earnings) made within the last 5 years are typically not eligible. Additional eligibility rules apply.

Yes. You can name a new beneficiary for the account as long as the new person is an eligible family member of the current beneficiary. 

You can either name a new beneficiary for the account or withdraw the funds. If you name a new beneficiary, he or she must be an eligible family member of the current beneficiary (e.g., a brother, sister, son, or daughter) to keep the tax benefits. Potential gift taxes or federal generation-skipping taxes may also apply. 

If you choose to withdraw the funds from the account for non-qualified expenses, 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. If the beneficiary receives a scholarship for qualified education expenses, dies, or becomes disabled, you may request a penalty-free withdrawal. In these situations, the account may still be taxed on the earnings portion of the withdrawals. Please consult your tax advisor to discuss your individual situation. 

You can roll unused 529 assets—up to a lifetime limit of $35,000—into the account beneficiary's Roth IRA, without incurring the usual 10% penalty for non-qualified withdrawals or generating any taxable income. Please consult your tax advisor to discuss your individual situation.

You may be able to transfer all or part of a custodial account to the Schwab 529 College Savings Plan if you are the custodian for a Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) account. The transaction may be taxable, but any future earnings may grow tax deferred. Because custodial assets are irrevocable gifts, the minor will be the 529 account owner and beneficiary, and you will be the responsible individual on the account. When the minor reaches legal adulthood (the age varies by state, but it's typically age 18), the minor will have full control of the account.

Guidance from the U.S. Department of Education says that a 529 plan is counted as an asset of the parent or other account owner in determining eligibility for federal financial aid. Only 5.6% of the value of the account is considered the parent's assets for financial aid calculations. There is no impact if the account is owned by another relative, such as a grandparent, aunt, or uncle. When assets are held in the child's name, such as with a custodial account, only 20% of the assets will be considered. Schwab recommends that you consult your tax advisor concerning your particular situation.