A smarter way to save for school
It's never too early to get a head start on your child's future. A tax-deferred 529 college savings plan helps you pay for things like tuition and housing when the time comes — and it may only take $15 to start. You can also use these funds for K-12 private schooling.
Explore the key benefits of 529 plans or contact an Allstate Personal Financial Representative to learn more.
- Offers tax breaks
In most states, you don't pay taxes on the interest you earn, and the money is tax free when withdrawn
- Covers the things you need
Pays for tuition, room and board, mandatory fees, books and supplies
- Gives you education options
Can be used at most colleges, universities or technical schools, in addition to K-12 private schooling
- Allows for flexible contributions
Can vary as long as they're within the minimum and maximum contribution amount — contributions can also be made by grandparents or friends
- Provides investment options
Typically, you can invest in options like stock, mutual and bond funds
- Doesn't expire
Change your beneficiary when you need — if the first child doesn't use it all, you could put the rest towards the second child
How do 529 plans work?
From just starting to make contributions to cashing in on all your savings, here's a look at how a 529 college savings plan works.
1. Start your plan
You're not limited to your home state's plan, so we can help you choose one that works for you
2. Grow your savings
Contribute to your account and choose how you want to invest your money. We can help you stay on track
3. Use the funds
When the time comes and your child is ready for college, you'll withdraw your tax-free savings