Skip to main content

Smart Savers Blog

Changes to 529 Plans Provide More Flexibility


Using your 529 plan just got even easier.

Congress passed legislation in December 2015 that made three substantive changes to 529 accounts. The legislation:

  1. Added items to the list of qualified higher education expenses for which account owners can use funds tax-free. See Qualified Higher Education Expenses.
  2. Allows account owners to redeposit some distributions without taxes and penalties in certain circumstances. See Redepositing a Refund.
  3. Changed the method for calculating earnings on distributions for those with more than one account for the same beneficiary. See Calculation of Earnings.

These changes add to the flexibility of 529 plan accounts and make it even simpler for families to save for higher education.

Congress surprises college savers with tax gifts  FAQs: 2015 Legislative Impacts to 529 Plan Accounts (pdf)

Resources to help you learn

Frequently Asked Questions

Find answers to the most common questions about 529 plans.

Smart Savers Academy

Tune in to a live episode and ask questions of the presenter, or watch a previously recorded webinar below.

Invest529 Portfolio Performance

Review and compare historical returns of Invest529 portfolios.