Vanguard 529 College Savings Plan

The Vanguard® 529 College Savings Plan gives you access to 22 low-cost Vanguard investments, high contribution limits, and tax-free withdrawals to pay for qualified higher education expenses.

Who should invest »

• Investors looking to save for higher education at a college or university—even graduate school.
• Anyone looking for withdrawals that are free from federal income taxes when used for qualified higher education expenses.*
• Investors seeking minimal impact on a student's federal financial aid.
• Anyone looking for a college savings option that provides the flexibility to change the beneficiary to another eligible family member at any time.
• Investors seeking estate and gift tax advantages.

Who can contribute and how much »

• Any U.S. resident age 18 and older, including parents, grandparents, and friends of the student beneficiary.
• Investors who hold other types of college savings accounts, such as education savings accounts and UGMA/UTMA accounts.

A range of low-cost investments »

• Choose from 3 age-based investment options that practically manage themselves. Each one automatically adjusts to gradually become more conservative, reducing your risk as your child grows older.**
• Build and manage a personalized college savings strategy with 19 individual portfolios spanning all asset classes and most investment styles, all at a low cost.

Easy account management »

• Boost your college savings through Upromise® Rewards.
• Keep your college savings program on track by setting up a custom schedule to electronically move money from your bank account to your plan.
• Withdraw your entire investment or a portion of it to pay for qualified education expenses.
• Access and update your investment allocations and personal information through Vanguard.com®.

Account fees and minimums »

• No enrollment, transfer, or advisor fees.
• Low expense ratios that vary by portfolio.
• The minimum initial investment for the Vanguard 529 Plan is $3,000. Once established, there is a $20 annual maintenance fee on balances less than $3,000 per 529 account.

Taking a distribution »

• Withdrawals are free from federal income taxes when used for qualified higher education expenses.*
• Qualified withdrawals online, by phone, or by form.
• Withdrawals by check or by ACH.

How to invest »

• Open an account online or by mail.
• Transfer college savings assets from another financial institution.
• Contribute to an account online or by mail.

*Earnings on nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as to state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements. 

** Investment returns are not guaranteed and you could lose money by investing in the plan.

For more information about The Vanguard 529 College Savings Plan, download a Program Description or request one by calling 866-734-4530. The Program Description includes investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor and Underwriter. Please Note: Before investing in any 529 plan, you should consider whether your or the beneficiary's home state offers a 529 plan that provides its taxpayers with favorable state tax and other benefits that are only available through investment in the home state's 529 plan. You also should consult your financial, tax, or other adviser to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state's 529 plan[s], or any other 529 plan, to learn more about those plans' features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

The Vanguard 529 College Savings Plan is a Nevada Trust administered by the Board of Trustees of the College Savings Plans of Nevada, which is chaired by the state treasurer. The Vanguard Group, Inc., serves as the Investment Manager and through its affiliate, Vanguard Marketing Corporation, markets and distributes the Plan. Upromise Investments, Inc., serves as Program Manager and has overall responsibility for the day-to-day operations, including effecting transactions. The Plan’s portfolios, although they invest in Vanguard mutual funds, are not mutual funds.

Also of interest

Education savings accounts

UGMA/UTMA accounts

Compare college savings options

Vanguard College Savings Center—529s and college investing

FAQs on college investing

Simplify investing with our age-based options