Saving for college can feel like a big step

If you’ve ever looked at the rising cost of college and thought about where to begin, you’re not alone. A lot of families may want to support a child’s future, but it can be hard to know what to do first. The good news is 529 plans are specifically designed to save for education, and they may be more flexible than many people expect.

What is a 529 plan?

A 529 plan is a tax-advantaged way to save for education from K–12 through college and beyond. Offered by states or schools, there are two main types: 

• Education saving plans (the most common): This is a flexible, investment-based savings plan.
• Prepaid tuition plans: This allows you to prepay tuition at participating schools.

In both cases, the account owner controls the account, including when withdrawals happen and who is the beneficiary.

Your money can grow and stay tax-free

One of the most compelling reasons to use a 529 plan over a standard savings account is the tax advantage. Earnings grow free from federal income tax, and withdrawals are also federally tax-free when used for qualified education expenses.

On top of that, over 30 states (plus the District of Columbia) offer a state income tax deduction or credit for contributions, meaning you may be able to reduce your tax bill today while saving for tomorrow. There are no income restrictions and no age deadlines; anyone can open or contribute to a 529 regardless of how much they earn. 

More flexible than you might think

A 529 plan isn’t just for four-year colleges. As of 2026, qualified expenses have significantly expanded and can include:

• College tuition, fees, books, supplies and room and board at eligible institutions  
• K–12 expenses including tuition and certain education materials, up to $20,000 a year per student
• Expanded K–12 costs: courses, tutoring, test fees, online tools and disability-related therapies
• Registered apprenticeship programs and expenses such as fees, books supplies and required equipment
• Student loan repayments up to $10,000 lifetime per individual  

If funds are used for nonqualified expenses, only the earnings portion of the withdrawal is subject to income tax plus a 10% penalty. That’s why it can help to plan withdrawals so they align with eligible expenses.

Save your way — with flexible contributions

You can contribute as much or as little as you want each year as there is no IRS annual limit, but there are a few things to keep in mind:

• Gift rules may apply at higher contribution amounts. For example, do you plan to contribute more than $19,000 per person or $38,000 jointly in 2026? If so, you’ll need to file IRS Form 709.
• Plans have lifetime limits (set by each state) that limit how much can be contributed per beneficiary over time. Lifetime limits per beneficiary typically range from about $235,000 to $600,000, or more.
• The state may treat withdrawals differently than federal rules, so it’s important to understand your state’s approach before using the funds for expenses.

One strategy to know: Superfunding

• Contribute up to five years at once: $95,000 per individual or 190,000 per couple
• Spread the tax impact over five years

This approach can be popular with grandparents looking to make a bigger impact, sooner.

What if my child doesn't go to college?

This is one of the most common questions, and 529 plans are usually more reassuring than expected.

If your child takes a different path, you can change the beneficiary to another family member (a sibling, cousin or even yourself) with no tax penalty. If education plans change, unused 529 funds may be eligible for a limited rollover to a Roth IRA for the beneficiary, with a maximum lifetime limit of $35,000, provided the account has been open for at least 15 years.

That means the savings you’ve built can still give them a meaningful financial head start, just in a different form. And if none of those options fit, you can always take a nonqualified withdrawal. You’ll owe income tax plus a 10% penalty on the earnings only, not on your original contributions.

A simple way to begin

You don’t need a large lump sum to open a 529 plan. Many plans have low or no minimum opening contributions, and setting up even a modest monthly automatic deposit can make a meaningful difference over time. The earlier you start, the longer your money can potentially grow — tax-free.

Ready to take that first step? Consider talking to a Voya financial professional today to explore your 529 plan options and see how education savings can fit into your broader financial picture. You can also use Voya’s college savings calculator to see how much your contributions could grow over time.