Are There Time Limits Or Age Limits On 529 Plans?

February 24, 2025

Are There Time Limits Or Age Limits On 529 Plans?

This question is about 529 plans.

For families saving for education expenses, 529 plans remain one of the most flexible and long-lasting options available.

Unlike other college savings accounts or financial aid programs, 529 plans do not have time or age limits for contributions or withdrawals.

However, some states do have different rules that may impact your 529 plan contribution or withdrawal decisions. Remember, since 529 plans are state-based, each state can create their own rules, regardless of what the federal rules say.

No Expiration Dates Or Age Limits For 529 Plans

One of the biggest advantages of a 529 college savings plan is that the money can remain in the account indefinitely.

There are no time limits on when funds must be used, and there is no age cap on contributions. This makes 529 plans a valuable tool for parents, grandparents, and even individuals looking to save for graduate school, continuing education, or transferring unused funds to another beneficiary.

Remember, you can contribute to a 529 plan even after a person is 18 years old. You can contribute to a 529 plan at any age – even for yourself in retirement!

Funds in a 529 plan can also be passed down through generations. If the original beneficiary does not use the funds, the account owner can change the beneficiary to another eligible family member, including a child, grandchild, or even themselves. Some families even setup a 529 plan as a multigenerational education trust.

This flexibility ensures that money set aside for education remains useful over time.

Prepaid Tuition Plan Limits

However, while 529 plans don’t have age limits or time limits, prepaid tuition plans (an alternative to 529 plans) typically do have limits.

States such as Alabama, Florida, Illinois, Maryland, Nevada, Texas, Washington, and West Virginia require the tuition benefits to be used within 10 years of the beneficiary’s expected college start date.

In Mississippi, it’s only 8 years, but it Michigan, it’s 15 years. Virginia has the longest window at 30 years.

The CollegeWell Private 529 Plan also uses a 30 year timeline.

Prepaid tuition plans in Nevada, Ohio, and South Carolina also set age limits for beneficiaries, typically around 28 to 30 years old, though military service can provide some flexibility.

Are There Time Limits Or Age Limits On 529 Plans?