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COLLEGE SAVINGS & MORE

529 Savings Plans

Tax-advantaged, flexible, and convenient. Learn about BlackRock’s 529 plans, navigate your investment strategy, and access benefits for advisors like you and your clients. It’s never too early or late to start investing for education.

Facts on 529 plans

01

No income limitations for 529 funds

Unlike other plans which can be funded only under specific income conditions, 529 plans can be funded by individuals of any income level. Learn more myths and truths about 529.

02

529 funds have more flexibility than you think

Account assets aren't limited to use towards traditional 4 year undergraduate education expenses. In addition, account owners can change or transfer assets to another beneficiary. Assets can grow in perpetuity with no time or age limitations.

03

Will my 529 plan affect financial aid eligibility?

Since 529 assets are considered assets of the owner, not the beneficiary, there are only small impacts to federal financial aid. When the parent is the account owner, 529 assets are factored into the expected family contribution rate (5.64%), the same as any other parental asset.

Why 529 plans?

Saving to cover the cost of school and its resources can seem daunting, but with consistent investing, sound financial advice and a 529 plan, affording education for the children in you or your client's life is achievable.

Learn why 529 plans are right for advisors like you and your clients.

Look out for tuition increases

graph of the total cost of a four year education increase

Sources: BlackRock; College Board, “Trends in College Pricing and Student Aid 2021.” Figures include tuition, fees, room and boa rd. Figures for age 18 based on costs for 2021 2022 academic year. Assumes a 5% price increase accounting for inflation and is for illustrative purposes only. As of 09/15/2022.

Between academic years 1991-92 and 2021-22, average tuition fees rose at public and private nonprofit four year institutions, after adjusting for inflation.

As tuition rates continue to increase, 529 plans provide a way for families to save for the cost of education while enjoying tax benefits.

The contributions made to the account grow tax free, and withdrawals used for qualified education expenses are also tax free. Additionally, some states offer tax deductions or credits for contributions made to 529 plans. Costs are projected to escalate by 8% each year and have exceeded annual inflation rates. Early and consistent investing in a 529 plan helps prepare clients for the rising cost of education and provide resources for the long term.

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Total college savings by account type

Source: “College Savings Statistics” EducationData.org, December 8, 2022, https://educationdata.org/college savings statistics

More investors are turning to 529 plans for education savings

529 plans are being utilized by an increasing number of investors due to their benefits, such as high contribution limits and potential for tax free growth and withdrawals when used for qualified educational expenses.

What 529 plans cover

529 plans can be used for:

  • Saving for a child, grandchild, or other student’s education
  • Tuition expenses up to $10,000 annually for K-12 public, private, or parochial schools
  • Graduate school, continuing education courses, apprenticeship programs
  • Student loan repayments
  • Tuition, room and board, fees, books, and supplies
  • Computer equipment and technology

Learning more, earning more

graph of a college degree showing increased income earnings

Source: “Bureau of Labor Statistics, www.bls.gov . Table 5. Quartiles and selected deciles of usual weekly earnings of full time wage and salary workers by selected characteristics, third quarter 2019 averages, not seasonally adjusted. Weekly amounts multiplied by 52 to determine annual earnings shown on chart.”

As the chart below demonstrates, education generally equates to higher earnings potential. According to a 2019 survey conducted by the U.S. Bureau of Labor Statistics, a person with a bachelor’s degree earned on average 71% more than a typical high school graduate. Someone with an advanced degree made 22% more than someone with a bachelor’s degree.

529 plan benefits for advisors

Consider the benefits and advantages advisors and advisory firms could gain through helping their clients with BlackRock 529 plans:

  • Building relationships with the next generation of clients
  • Retain and grow family assets/classes
  • Implement as key estate planning strategy
  • Incorporate into whole portfolio financial planning
  • Position asset growth with clients for education and retirement

529 plan benefits for clients

Unique tax benefits
529 plans in many states offer investors tax benefits for contributions, providing additional incentive for investors to save for educational expenses.
Flexibility
Transfer plan benefits to another eligible family member of any age. Invest in any 529 savings plan regardless of your state of residency.
Growth potential
Clients can grow and withdraw assets free from federal and some state taxes, where applicable. BlackRock’s 529 plans provide convenient advantages tax free.

Take advantage of state tax benefits

US map with colors orange, yellow, and pink
Tax parity states

These states offer a tax deduction for contributing to any 529 plan, including out of state plans, which may be more attractive than the in-state option.

Tax neutral states

These states offer no 529 state income deductions or income tax credits for 529 plan contributions.

In-state tax benefits

These states offer potential tax breaks on contributions made only to in-state 529 plans

BlackRock 529 plans

Learn about BlackRock’s 529 savings plans with benefits for Ohio and Maine residents.

CollegeAdvantage 529 NextGen 529
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Well, good morning.

I picked my own outfit.

I love it.

Mommy, guess what?

What, baby?

I picked a college. And it's really far away.

When did you grow up?

Yep, I'm a grown-up.

Someday, she really is going to college. So start saving with Ohio's tax-free 529 plan. We make it simple to get your plan on track to meet any savings goal. Someday starts at BlackRock.com/CollegeAdvantage.

An investor should consider the investment objectives, risk, charges, and expenses associated with the municipal fund based securities before investing. More information about municipal fund securities is available in the issuers program description. You may obtain a program description by visiting www.BlackRock.co m/CollegeAdvantage, calling 866-529-8582, or by contacting your financial advisor. The program description should be read carefully before investing.

CollegeAdvantage 529 Plan

The BlackRock CollegeAdvantage 529 plan is an investment program designed to help investors save for college expenses without the burden of taxes. Comprised of mutual funds and ETFs from BlackRock, iShares, and other leading asset managers, our plan holds added benefits for Ohio residents.

Read more Read more

CollegeAdvantage 529 investment strategies

Your investment strategy should match your college savings goals. BlackRock CollegeAdvantage offers 3 distinctive investment approaches, allowing financial advisors and clients to choose the best option for their needs. Read more about our menu of investment options and enhance your clients’ savings strategies.
protect pie
Target date
Choose a portfolio based on intended enrollment date and the target date. In the portfolio name is the approximate date when an investor plans to start withdrawing money.
risk cone
Target risk
Based on your preferred risk exposure, select a portfolio that aims to deliver this consistent risk over time and automatically adjusts to a more conservative allocation.
target
Single strategy
Pick from our menu of 17 investments to build a customized portfolio. Beneficial for clients if you want complete control over your investment selections.

COLLEGEADVANTAGE 529

2022 Quarterly performance report

BlackRock’s CollegeAdvantage 529 education savings plan is 1 of 3 plans awarded a medal rating by Morningstar, out of 30+ advisor sold 529 plans.
Read report Read report

Explore more resources

Access your CollegeAdvantage 529 account Access your CollegeAdvantage 529 account
CollegeAdvantage 529 forms and applications CollegeAdvantage 529 forms and applications
How to enroll in CollegeAdvantage 529 How to enroll in CollegeAdvantage 529
Summary of fees and expenses Summary of fees and expenses

NextGen 529

Start investing in education expenses with a tax advantaged section 529 that offers flexibility for advisors and clients, with added benefits for Maine residents. NextGen 529 is a Section 529 plan offered to clients regardless of state residency, sponsored by the state of Maine and administered by the Finance Authority of Maine.
Learn more Learn more
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529 SAVINGS TOOLS

529 Calculator

BlackRock’s 529 calculator and savings estimator tool helps you determine how much you need to save for college and other educational expenses. Customize your savings and investment strategies for your 529 plan and access our features to identify the best options for advisors and clients.