Scholar’s Edge 529 | 529 Plan Features & Benefits

Flexibility, control, and tax-deferred growth.

Features & Benefits

Scholar’s Edge combines the key benefits of a 529 savings plan with the key features you expect from Principal.

Key benefits of a 529 plan

Tax Advantages1

  • Tax deferred growth of investment earnings 
  • Tax-free withdrawals for qualified expenses
  • Income tax deductions for certain states

Control

  • Apply funds toward a range of qualified higher education expenses 
  • Control portfolio selection and distributions
  • Transfer account assets to another family member if the original beneficiary no longer needs the funds for college

Key features of the Scholar's Edge 529 Plan

Accessibility

We provide online functionality, resources and a number of helpful tools to easily manage your account across a range of topics:

  • Additional contributions 
  • Withdrawals
  • Investment changes
  • Changes to banking instructions
  • Changes to delivery preferences
  • Profile updates
  • Access to education savings resources

Flexibility

We’ve improved Scholar’s Edge to make life’s important choices even easier, offering choice, value and peace of mind.

  • Comprehensive range of investment options
  • Low minimum investment with as little as $1
  • High maximum investment of $500,000 per beneficiary
  • No income limit – no matter your salary, you can start saving in the Scholar’s Edge 529 plan

1 Please note: earnings on unqualified withdrawals are subject to federal income tax and a 10% federal tax penalty, as well as state and local income taxes. Tax and other benefits are contingent on meeting the requirements, and withdrawals are subject to federal, state, and local taxes.