Giving families financial opportunities

Giving families financial opportunities

Why education savings with a 529 plan is so beneficial

You want to do all you can to help loved ones succeed, and that includes the ability to provide a solid education. The Scholar’s Edge 529 plan is a tax-advantaged savings plan designed to help families save for that dream. It’s a classic “save more now, pay less later” kind of thing.

And the earlier you start, the more time you have to take advantage of compounding interest. If you put your money into your bank’s traditional savings account, that money will not earn much interest over time. However, if you put some of your savings for education into a 529 account, that money is invested and has the potential to grow at an exponentially higher rate over time. When you eventually go to withdraw that money for educational spending, it is likely to have grown more over time than it would have in a savings account.

What can a 529 Plan be used for?

529 plans can be used for much more than just paying for college. 529 plans can be used for a variety of qualified expenses including:

  • Tuition and fees at colleges and universities, vocational school, community college and some foreign institutions
  • Qualified kindergarten through 12th-grade tuition
  • Books
  • Supplies and equipment
  • Room and board for beneficiaries attending on at least a half-time basis
  • Repayment of up to $10,000 in qualified student loans
  • Many other options (PDF)
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Benefits of a Scholar’s Edge 529 Plan

  • Scholar’s Edge offers a diverse range of investment options with 11 Year of Enrollment Portfolios, four Target Risk Portfolios, and 15 individual fund options.
  • The Scholar’s Edge Capital Preservation Portfolio offers a guaranteed annual interest rate of at least 1%.1
  • Low minimum investment requirement, high maximum investment amount and no income-based parameters that would make some earners ineligible.
  • Online functionality and support. We provide resources and tools such as four savings and repayment calculators and a content library filled with industry updates and savings tips.
  • Scholar’s Edge works with Principal Financial Group to ensure deep asset allocation expertise. Principal is the largest provider of active, multi-manager target date funds in the United States.2
  • We’ve created state of the art glide path technology informed by real data on economics, markets, and student behavior. Our glidepath moves from capital appreciation to capital preservation as the beneficiary’s expected year of enrollment approaches.
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Contribution opportunities

You can contribute to a Scholar’s Edge 529 Plan until it reaches $500,000 per beneficiary. You and your loved ones can contribute to a 529 plan in a variety of ways, including the following:

  • Ugift®. Gift contributions can be made with Ugift, an easy, free-to-use feature of Scholar’s Edge, to help fund your child’s education. Friends and family can use your account’s unique Ugift code at any time to easily make gift contributions at Ugift529.com.
  • Payroll direct deposit. You can arrange to have money transferred to your 529 account regularly from your payroll using direct deposit (if allowed by your employer). If that option is not available through your employer, you can contribute to a 529 directly from your bank account.
  • Upromise®. You can join Upromise for free and link a debit or credit card to your account. When you use that card(s) at participating dining and shopping partners, a percentage of your eligible spending will be deposited in your Upromise account. Those funds can be automatically transferred to your Scholar’s Edge 529 plan.
  • Estate planning. You can work with a financial professional to make 529 plans part of your estate planning. Scholar’s Edge allows you to contribute up to the following amounts per beneficiary:
    • $18,000 individually
    • $36,000 jointly with your spouse
    • $90,000 individual lump-sum contribution (spread over 5 years)
    • $180,000 joint lump-sum contribution with your spouse (spread over 5 years)

You can learn more about accelerated gifting here (PDF).

How to enroll

Reach out to your financial professional and request to enroll in a Scholar's Edge 529 Plan.

Contact your financial professional

Email the Scholar's Edge 529 Plan enrollment kit directly to your financial professional and ask to enroll.

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Contact us

Call 866-529-SAVE (866-529-7283), Monday through Friday, 8:00 a.m. – 7:00 p.m. MT, to talk to a Scholar's Edge client service representative.

1 The Portfolio invests 100% of its assets in the Scholar’s Edge Guaranteed Contract issued to the Plan by Principal Life Insurance Company. Under the Contract, principal and a rate of interest are guaranteed to the Plan by Principal Life. Principal Life guarantees the interest rate under the Contract will be at least 1%. The Portfolio is subject to the risk that Principal Life will become unable to make its payment obligations under the Contract.

2 Source: Sway Research State of Target Date Market, 2024. Rating refers to the AUM in the U.S. market. This ranking includes both Target Date CIT and Target Date funds.