Education Funding

Helping a child or grandchild prepare for future education costs can be a meaningful way to support their long-term financial well-being. With education expenses continuing to rise, starting early—and choosing the right savings approach—can help families plan with greater confidence.

There are no income limits for contributors, making 529 plans a flexible option for families who want to save over time or make larger gifts. In 2026 you can contribute up to $19,000/year ($38,000 for a married couple) per beneficiary.

Your Janney Financial Advisor can help you estimate future education costs, evaluate available savings vehicles, and develop a strategy aligned with your goals, time horizon, and broader financial plan.

Education savings options to consider

A calculator

529 college savings plans

A 529 plan is a tax-advantaged account designed to help families save for education expenses. Account owners can name a child, grandchild, or other eligible beneficiary, maintain control over distributions, and change the beneficiary if needed. Contributions have the potential to grow tax-deferred, and withdrawals are generally tax-free when used for qualified education expenses. These may include tuition, fees, books, supplies, certain room and board costs, and other eligible expenses.

A checklist and a pen

Coverdell educational savings accounts

Coverdell education savings accounts are tax-advantaged accounts that can be used for qualified elementary, secondary, and higher education expenses. Contributions are limited to $2,000 per beneficiary per year, and income limits apply to contributors.

UGMA/UTMA custodial accounts

Uniform Gifts to Minors Act and Uniform Transfers to Minors Act accounts allow assets to be transferred to a minor and managed by a custodian until the child reaches the age of majority, which varies by state. While these accounts may be used to help fund education, the assets belong to the child and are not limited to education expenses.

Expanded uses for 529 plans

529 plans can now be used for a broader range of education expenses than traditional college costs alone. In addition to qualified higher education expenses, federal rules allow 529 plan assets to be used for certain elementary and secondary school tuition expenses, as well as other qualified education-related uses. Because state tax treatment and plan rules may vary, it is important to review your options with your Financial Advisor and tax professional before taking distributions.

 

 

 

 

Talk to a Janney Financial Advisor

You don’t have to navigate your financial journey alone. Wherever you are today, a Janney Financial Advisor can help you create a personalized plan aligned with your goals, priorities, and evolving needs. With thoughtful guidance and strategies tailored to your unique circumstances, we’ll work with you to build a plan designed to help you Plan for More™ — today and in the years ahead.


Connect with an Advisor 

For more information about Janney, please see Janney’s Relationship Summary (Form CRS) on www.janney.com/crs which details all material facts about the scope and terms of our relationship with you and any potential conflicts of interest.

To learn about the professional background, business practices, and conduct of FINRA member firms or their financial professionals, visit FINRA’s BrokerCheck website: http://brokercheck.finra.org/

GET IN TOUCH

Two easy ways to connect with a financial advisor

How would you like to start the conversation?

Get Matched

Answer a few quick questions to be paired with the right advisor.

Schedule a Call

Choose a time that works best for you to speak with an advisor.

Already have a Janney advisor? Looking for one nearby?

Search Advisor Directory