Friends and Family

Anyone can enroll and contribute to a T. Rowe Price College Savings Plan account. Whether you’re a grandparent, family member, or friend, it’s a great way to save for a child’s education. You can open an account of your own or make a gift contribution to any child’s college savings plan account.

There are no limits on age, income, or state of residency. And you can invest any amount up to the account balance maximum of $400,000. The gift of education is the perfect present for every child’s future.

Set Your Sights on a Child’s Future Education

Contributing to a 529 college savings plan account can be one of the most valuable gifts anyone can give. The T. Rowe Price College Savings Plan lets you help with some, most, or all of a child’s higher education costs.

Whether you’re a member of the family or a friend, you can start a 529 college savings plan account for a child’s education even before he or she is born. We’ve made it easy to open an account in the parent’s name, and once the baby arrives, you can transfer the beneficiary. Although college may seem far away, opening a T. Rowe Price College Savings Plan account puts the power of time and earnings potential, on your side.

The Benefits of Saving for a Child’s Education

You can give more with a 529 “five-year election.”

Traditionally, the maximum amount you can gift in a year, without gift taxes, is $14,000. But with a 529 plan, you can front-load your contribution, allowing you to contribute up to $70,000 (or $140,000 for a married couple) into a 529 plan without paying extra gift taxes. You’ll give a gift that can help support their future higher education goals and aspirations. (Additional gifts you make to the same child during the five-year period may be subject to gift taxes. Speak with a knowledgeable tax professional for details.)

Our College Savings Plan is an excellent estate planning tool.

You can significantly reduce the value of your taxable estate by funding a 529 plan, since when you contribute to a child’s 529 plan account, the contributions and earnings are removed from your taxable estate and considered a gift to the child. However, you remain in control of the assets.

Our 529 plan is an excellent way to help a child save for college.

Here’s how it works. You contribute to an account that you control on behalf of a specific beneficiary. You can withdraw the money tax-free—as long as it’s used to pay qualified education expenses at any eligible college, graduate, or vocational school.

Our 529 plan gives you control of the assets—not the beneficiary—ensuring the money will be used for its intended education purpose.

As the account holder, you will be able to:

  • Make investment elections that you feel are best suited for helping your loved one achieve his or her higher education goals.
  • Adjust your contributions as needed based on financial needs.
  • Control when distributions are taken.
  • Determine if and when the beneficiary is ready to manage his or her account.

You can contribute as little or as regularly as your budget allows based on what life throws your way.

Here are just some of the advantages to our 529 plan:

  • Accounts are transferable to beneficiaries (the new beneficiary must be a member of the previous beneficiary’s family).
  • No time restrictions, so your beneficiary can use the savings anytime.
  • Contribute as little as $50 a month and increase or decrease
    contributions whenever you want.
  • Make withdrawals for your beneficiary at any time. However, earnings are subject to tax and a 10% penalty if not used for qualified education expenses. Use the savings at nearly any college, university, or graduate school in the U.S., including vocational schools.