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- Total 529 college savings plan assets have exceeded $508 billion for the first time
- There are currently more than 16.8 million 529 accounts open in the United States
- 38% of 529 plan users use automatic deposits
According to the latest data from the College Savings Plans Network, total assets in 529 plans exceeded $508 billion as of June 30, 2024. This is the total balance of all 16.8 million accounts held at the various 529 plans in each state.
Mary Morris, chair of the College Savings Plans Network and CEO of Invest529, said in a press release, “Given the difficulties faced by those seeking an education after high school and the difficulty employers have in finding workers with the technical skills needed in today's job market, it is encouraging to see that the number of individuals and families investing in their future with contributions to tax-advantaged 529 accounts continues to grow strongly.”
The College Savings Plan Network is a branch of the National Association of State Treasurers. It's important to remember that each state has its own 529 plan, so the rules may vary from state to state.
Related: 529 Plan and College Savings Statistics
Growing interest in 529 plans
The number of open 529 accounts has now reached more than 16.8 million nationwide, indicating a steady increase in participation. In the last year, new 529 plan options, such as the ability to convert a 529 plan to a Roth IRA, have sparked interest in these plans more than ever.
Another factor driving the growth of existing account balances is the increasing use of automatic deposits. According to CSPN, over 38% of 529 plan participants are now enrolled in automatic deposit programs, which allow regular deposits to be made into their accounts without families having to manually transfer funds.
529 plans offer compelling tax advantages when used for qualified expenses. Contributions grow tax-free at the federal level, and withdrawals remain tax-free when used for qualified higher education expenses, which include tuition, books, room and board, and certain supplies.
Many states also offer tax benefits such as tax credits or deductions for contributions. You can find your state in our list and see what your state offers.
Improving accessibility of education
The milestone of $508 billion in 529 plan savings comes at a time when higher education costs continue to rise, posing significant challenges for families.
As employers face a growing need for workers with technical and college skills, the role of 529 plans in preparing the next generation for success has never been more important. Not only are these plans designed to facilitate access to college, but they can also help with the costs of education from pre-K through 12th grade, vocational school, and more.
The growth in 529 plans continues to underscore the importance families place on saving for education expenses.
Don’t miss these other stories:
A Better 529 Plan Investment Strategy What are the best 529 plans based on performance? How 529 plans work (in simple terms)
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