CSF Celebrates 30 Years of 529 Education Savings Plans

National nonprofit cites game-changing flexibility of 529s in helping families save; new gifting options expand opportunities to save

WASHINGTON, Jan. 2, 2026 /PRNewswire/ -- CSF, a leading nonprofit helping families save for a lifetime of education, is kicking off the 30^th anniversary of Congress' creation of 529 education savings plans with a pledge to continue to raise awareness of their benefits and flexibility for families and learners of all ages.

CSF has been instrumental in collaborating with lawmakers on behalf of the 529 industry and families they serve, to expand the use of 529s beyond traditional four-year college to include career and technical schools, community colleges, professional certifications, and postsecondary credentialing expenses.

Accordingly in this milestone year, CSF's annual Conference will focus on the theme "529s: Thirty Years of Stability in a Sea of Change" as it gathers 529 experts from State Treasurers, financial institutions, education associations, and nonprofits on March 3-5, 2026 in Ft. Myers, FL. CSF members represent 96% of the industry.

"We are so proud that we have been able to partner with the industry, the government, educators and communities to continually improve upon and adapt 529 education plans to meet the needs of families," said CSF Chair Chris McGee. CSF was founded as the College Savings Foundation in 2001.

A compelling multigenerational trend was revealed in CSF's 2025 State of Higher Education Survey of 1,000 parents, ranging from their 20s to their 50s. A significant 25% reported they had used 529 funds for their own education—and are now saving in 529 accounts for their children. This finding shows a legacy of saving as the generation born when 529s were established have families of their own.

The popularity of 529s reflects this trend. As of 3Q 2025, 529 savings plans had $561.9 billion in assets under management across more than 16.5 million accounts (excluding prepaids), according to ISS Market Intelligence.

In particular, high school students prefer monetary gifts towards their education over material goods. In its survey of 1,000 sophomores, juniors and seniors, CSF found that three quarters would rather receive money for education on special occasions, and of those, 82% want their parents to make it easy for family and friends to contribute directly to their 529 education plan.

"With $1.8-trillion in student debt, high school students know that it will take a village to fund the higher education they will need to succeed over their lifetimes," McGee added. 80% of the 1,000 parents responding to CSF's 2025 State of Higher Education survey expect their children will need continuous education to sharpen their skills over the course of their lives; and 51% of parents say they themselves will require additional education or certifications to advance or change careers.

529s' continuous expansion of higher education and career options

As CSF's Conference theme, "529s: Thirty Years of Stability in a Sea of Change Today," expresses, 529 plans' earnings can grow tax-free if used for qualified education expenses that now apply to a broad range of options. These include traditional four-year colleges, community colleges, graduate schools, career and technical schools, apprenticeships, and qualified postsecondary credentialing expenses that apply to programs to attain credentials, certifications, or licenses needed for professional advancement. 529s can be used for room and board; computers, books, and technology software; up to $20,000 per year for K-12 education expenses; and up to $10,000 to pay off student loans, with a lifetime limit per beneficiary.

In a move that recognized the importance of lifelong saving habits, effective 2024, Congress enabled unused funds in a 529 to be eligible for rollover to a Roth IRA under certain conditions, such as a lifetime limit of $35,000 per beneficiary. This assured parents that unused savings in 529 savings could be used towards the child's retirement, and if invested, receive the benefits of long-term compounding interest.

"While most families use their 529 savings for education purposes, this reinforced the value of saving at all stages of life. There is no better tool for parents to help their children acquire personal finance goals and strategies than to sit at the kitchen table. This topic gives children a chance to discuss their hopes and dreams, and get their parents on the same page," McGee said.

Early History of 529s

In 1996, Congress created Section 529 plans, but earnings were taxed upon withdrawal. In 2001, The Economic Growth and Tax Relief Reconciliation Act was passed, which exempted qualified distributions from federal tax, a change that took effect in 2002. Then in 2006, the Pension Protection Act made 529 plans' tax-free withdrawal status permanent. 

Friends and families are increasingly contributing to a child's 529 accounts as a gift for holiday or special occasion. Reporting CSF members saw more than $750 million in gifting contributions in the first three quarters of 2025.

The benefits go back to the opportunities that higher education affords a young person. As one investor in The Edvest 529 College Savings Plan, managed by TIAA-CREF, TFI/Wisconsin Department of Financial Institutions, said recently, "I've been contributing to my niece's 529 account since she was about eight years old. She's now 20 years old and attending a local technical college. I'm proud to have helped pay for her education so she can hopefully get a good job and support herself."

Employers are also seeing the benefit of offering them as options to employees. As only one of many examples, Liz Uzzo, Executive VP and Chief Human Resources Officer at H2M, said about NY's 529 College Savings Program managed by Ascensus Government Savings, "I'm always looking for benefits that truly make a difference in our employees' lives. NY's 529 College Savings Direct Plan has been one of those impactful offerings. It gives our team an easy, tax-advantaged way to save for their children's education, and the feedback has been overwhelmingly positive. Providing this voluntary benefit reinforces our commitment to supporting employees not just at work, but in planning for their families' future."

About CSF

CSF is a Washington, D.C.-based not-for-profit organization helping American families achieve their education savings goals for a lifetime. www.collegesavingsfoundation.org

Media Contact: Lynthia Romney, RomneyCom, [email protected] 914-589-2140

SOURCE The College Savings Foundation