- May 29 is recognized nationally as “529 Day,” with states and financial institutions offering bonuses, giveaways, and events to promote college savings.
- More than $525 billion is currently saved in 529 plans nationwide, as families seek tax-advantaged ways to prepare for future education expenses.
- Dozens of states are providing one-time incentives, cash matches, webinars, and contests to encourage participation in these programs.
Across the country, May 29 marks a coordinated push to promote college savings accounts known as 529 plans. Created under Section 529 of the Internal Revenue Code, these plans offer families tax advantages to save for education, and this year, many states are sweetening the deal.
From cash bonuses to newborn giveaways, state treasurers and plan administrators are using the date to draw attention to long-term saving. The effort is backed by the College Savings Plans Network (CSPN), a group under the National Association of State Treasurers that tracks participation and manages outreach.
“With 529 Day we remind families of all ages to take time out and review their plan to pay for post-high school education, to start a 529 account if they haven’t already, or to contribute to existing accounts or set them up for recurring contributions and take some guesswork out of their long-term planning,” said Mary Morris, CSPN Chair and CEO of Commonwealth Savers.
What Is A 529 Plan?
A 529 plan is a type of investment account that allows money to grow tax-free when used for qualified education expenses. That includes tuition, fees, books, and even some housing costs at eligible colleges, universities, and trade schools. Some states extend benefits to K-12 tuition, student loan repayment, or even converting funds to a Roth IRA.
These accounts can be opened by parents, grandparents, or others on behalf of a beneficiary. Contributions are made with after-tax dollars, but many states offer a deduction or credit on state income taxes. There are no income limits, and funds can be transferred between family members if the original beneficiary doesn’t use the money.
As of the end of 2024, Americans had saved more than $525 billion in 529 accounts, according to CSPN. The continued interest reflects growing concern about student debt, which now totals nearly $1.8 trillion nationwide.
States Offer Giveaways, Bonuses, And Events
To mark 529 Day, most state-run plans are offering limited-time promotions or educational events. Some of the bonus offers include:
- Alabama: A $529 contribution giveaway to 29 babies born between May 29, 2024, and May 29, 2025.
- California: A $50 bonus for new ScholarShare 529 accounts opened with recurring deposits through May 31.
- Georgia: A $50 bonus for new accounts setup between 5/20/25 and 5/31/25 with a least recurring contributions of $50 per month for six months.
- Kansas: Open a new LearningQuest 529 plan between 5/21/25 and 6/1/25, and get a $50 bonus contribution.
- Louisiana: All Louisiana residents who make a minimum deposit of $29 into a Louisiana 529 Saving Plan account before May 29 will be entered into a drawing to receive $529 deposited into their START, START K12, or LA ABLE account.
- Michigan: MET is offering a $50 bonus to existing contract holders who contribute $250 to their MET between 5/29/25 and 6/1/25. New Purchasers may also qualify for a $50 bonus if they open a new MET with a minimum $250 contribution during online enrollment.
- Minnesota: Open a new account with $50 between 5/20/25 and 5/31/25, set up recurring contributions of at least $50/month for six months, and get $50!
- Pennsylvania: Six $5,529 prizes for those contributing at least $10 to eligible plans this May.
- South Carolina: For South Carolina residents, PalmettoBabies born on 5/29/2025 are eligible to receive a privately funded $529 grant when their parents open a new Future Scholar account.
- Utah: A $40 match for new my529 accounts opened this month with monthly deposits.
- Virginia: For one day only, open a new Invest529 account on May 29th and use the gift code 529DAY2025 to receive a bonus initial contribution of $25.
Other states may be offering live social media contests to podcasts and webinars. In Arizona, the state Treasurer is making surprise hospital visits to gift newborns their first 529 deposits. Others are inviting kids to draw pictures of their dream jobs or join summer baseball events to raise awareness.
Why 529 Plans Matter Now
With student loan forgiveness policies uncertain and college costs rising, families are increasingly turning to savings strategies that help limit future borrowing. A small but steady contribution into a 529 account can reduce the need for loans and build a sense of financial preparedness.
The plans also serve more than just college-bound students. Funds can be used for trade schools, apprenticeships, and qualifying certifications. They can also support adult learners returning to school later in life.
Even modest contributions matter. Many plans allow accounts to be opened with as little as $25. Some states even provide seed money to encourage participation, especially among lower-income families.
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