For Grandparents

Invest in your grandchildren’s future

Invest529 offers a simple and convenient way for grandparents to save for their grandchildren's future education expenses. By opening an Invest529 account, you'll realize tax advantages while also taking an active role in shaping their educational journey.

Saving tips for grandparents

Top reasons for grandparents to open a 529 account

Federal and state tax advantages

Earnings on your accounts grow free from federal tax when used for qualified education expenses. Depending on your state of residence, you may be entitled to additional tax advantages.

Minimal impact on financial aid

Beginning with the 2024-25 FAFSA, students are no longer required to report withdrawals from grandparent-owned 529 savings accounts. This means you can help fund your grandchild's education without potentially impacting eligibility for financial aid.

Full control of the account

You’re in charge of how the funds are invested and when they are used. You even have the option to change the student or designated survivor at any time.

Reduce your estate taxes

Contributions to a 529 plan are treated as a completed gift to a student and are generally excludable from the account owner’s taxable estate. This means in 2025, contributions up to $19,000 a year, or $38,000 for married couples, are gift tax free. Special 529 rules even allow you to make a lump sum contribution of up to five times the annual gift tax exclusion amount and spread it over five years.

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My grandchildren are 1, 5 and 9. My dream is for them to be able to attend school and study without having to worry about finances.

- Lisa J.

Grandparent savers FAQs

: You can contribute as often as you’d like (up to the yearly contribution limits for the student). If you own an Invest529 account, it’s easy to set up automated contributions from a bank account. Related: Invest529 Contributions.
: Yes. You can give the gift of education in three easy ways – online, by gift card, or by mail. If you are making a gift online for the first time, you’ll need to set up a web account. After you’ve created a web account, you can make a gift directly to a student’s account using their Gift ID or by sending a digital gift card. Related: Invest529 Gift Center.
: 529 accounts don’t need to be exclusively used for college! Because of the flexibility, a 529 account can be used toward any eligible professional or vocational school, and even for registered apprenticeship programs. If higher education isn’t in your student’s immediate plans, you can hold the funds in the account for their future use. Alternatively, you can change the student on the account to an eligible family member or even yourself for your own education. The money in the account is always yours. You can withdraw your original investment, although you may be subject to taxes or penalties on investment earnings or non-qualified expenses.
: Yes. An Invest529 account owner may select multiple portfolios, and each portfolio selected creates a separate account. Although a student can have multiple accounts, an account owner may not have two accounts in the same portfolio for the same student.
: Yes. Some states, including Virginia, allow a 529 account to be used to cover tuition costs for private and religious K-12 education, up to $10,000 per child per calendar year.