Planning for the future: a new way to contribute to children’s future education
J.P. Morgan created a program that provides 529 college savings plans new ways to help U.S. account holders save for college. The ‘529 Gifting Program’ helps students by providing a new and convenient way to receive gifts to their 529 accounts.
Planning for your family’s future often comes with the worry about shouldering substantial education expenses. With costs rising annually, there are ways to add contributions to help ease the burden. With over $20 billion in assets under management, my529 is the third–largest, direct-to-consumer 529 plan in the nation and has helped families across the country invest for future qualified education expenses for more than 25 years.
Gifting for the future
The 529 Gifting Program enables friends and family to use a debit card to contribute up to $250 at a time to 529 plans. J.P. Morgan, together with my529, are offering this convenient way for family and friends to contribute to education savings. J.P. Morgan handles debit card transaction processing and service fees on behalf of my529, while my529 owns and maintains the gifting experience on its website. Most major debit cards are accepted.
529 account holders use their plans as a tax-advantaged vehicle for a beneficiary’s qualified education expenses, such as tuition and fees, books, supplies and equipment, room and board, computers and internet access. 529 funds also can be used for registered apprenticeships, K-12 tuition expenses up to $10,000 annually, and even student loan payments for a beneficiary or their sibling, up to certain limits.
Beneficiaries of the plan can use their 529 funds at eligible education institutions nationwide and abroad, as long as the school participates in federal student aid programs. Withdrawals from the plan are tax free when used for qualified education expenses.
How does my 529 fit into a family's financial outlook?
At the end of 2Q23, the amount of debt held by U.S. households reached a record $17.06 trillion, according to a Federal Reserve report1. Matt Leman, Head of Partnership Initiatives at J.P. Morgan Payments, says: “The adverse link between debt and increased stress and anxiety is well-established: the more overwhelming money issues are, the more of an impact it can have on one’s well-being. my529 helps families plan and pay for the rising costs of higher education, helping reduce student debt and ease financial stress for the student and their family.”
Even if an account holder does not save enough in a 529 account to cover their beneficiary’s entire education, it still makes a difference. Perhaps their 529 funds could cover a semester’s tuition, housing, or even books. And that’s money they won’t need to borrow.
Richard Ellis, Executive Director of my529: “As a leader in the 529 space, my529 is committed to providing innovative solutions for families who are investing for college, technical college or trade school, or graduate school. That’s why my529 teamed up with J.P. Morgan to offer the ability to use debit cards on my529’s gifting platform. This innovation will add convenience for loved ones to gift to a my529 account so they can contribute to the beneficiary’s education—and their future”.
How it works
- Once the my529 account holder creates their account at my529.org, my529 provides the account holder with links/gift codes to forward to friends and family, directing them to the my529 gift program website
- When a gifter clicks on “Give a Gift” from my529’s gifting program website, the gifter selects debit card as a gifting method
- The gifter selects the pre-determined gift amount, is made aware of the service fee, and then proceeds to a payment information page where they can enter their debit card payment information.
- The my529 account holder and gifter both receive notification emails that a payment has been made.
For more information about my529, or to open an account, please visit https://my529.org/
For more information about the 529 Gifting Program please contact your J.P. Morgan representative.
Important Legal Notice
Investing is an important decision. The investments in your account may vary with market conditions and could lose value. Carefully read the Program Description in its entirety for more information and consider all investment objectives, risks, charges and expenses before investing. For a copy of the Program Description, call 800.418.2551 or visit my529.org.
Investing is an important decision. The investments in your account may vary with market conditions and could lose value. Carefully read the Program Description in its entirety for more information and consider all investment objectives, risks, charges and expenses before investing. For a copy of the Program Description, call 800.418.2551 or visit my529.org.
The state in which you or your beneficiary pay taxes or live may offer a 529 plan that provides state tax or other benefits, such as financial aid, scholarship funds and protection from creditors, not otherwise available to you by investing in my529. You should consider such benefits, if any, before investing in my529.
my529 does not provide legal, financial, investment or tax advice. You should consult your own tax or legal advisor to determine the effect of federal and state tax laws on your particular situation.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of J.P. Morgan, its affiliates, or its employees. The information set forth herein has been obtained or derived from sources believed to be reliable. Neither the author nor J.P. Morgan makes any representations or warranties as to the information’s accuracy or completeness. The information contained herein has been provided solely for informational purposes and does not constitute an offer, solicitation, advice or recommendation, to make any investment decisions or purchase any financial instruments, and may not be construed as such.
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