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There are no time restrictions for using 529 college savings plan accounts, so if your beneficiary does not go to college right away, you can keep the money in your account to use at a later date. The funds may also be used for certain vocational schools or apprenticeship programs. Alternatively, you have the option to change the beneficiary on the account, or you may request a nonqualified withdrawal, which may be subject to federal and state income taxes and a 10% federal penalty (on the earnings portion only).

You can roll over unused 529 savings to a Roth IRA maintained for the same account beneficiary with a Rollover to Roth IRA Form. The 529 plan account must have been maintained for at least 15 years, and only contributions (and accompanying earnings) made more than five years prior can be rolled over. The amount eligible for rollover each year cannot exceed the IRA contribution limit, and there is an aggregate limit of $35,000.

Please read and/or download the Plan Disclosure Document for additional information. If you have questions about your specific situation, please speak with a tax professional.

Although it is not required, it is strongly recommended that you designate a successor account owner or custodian to take over the account in the event that you pass away. A successor can be added when the account is set up or at a later date online or by completing the appropriate section of the Account Information Change Form. For a designation or change of a successor to be valid, it must be received and processed by the plan prior to the account owner's death.

Yes, you can change your beneficiary or transfer a portion of your investment to a different beneficiary at any time by either logging in to your account online, with a Transfer Form, or by phone (as long as the receiving account is already established with the same account owner). In order for the transaction to be considered a tax-free transfer by the IRS, the new beneficiary must be a member of the previous beneficiary's family, as defined by the Internal Revenue Code, and be a member of the same generation as the previous beneficiary. If the new beneficiary belongs to a generation two or more levels below the original beneficiary, or if the beneficiaries are not related, additional taxes may apply. Furthermore, gift taxes could apply when the beneficiary is changed, depending on the amount being transferred to the new beneficiary.

Family members include:

• Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them
• Brother, sister, stepbrother, or stepsister
• Father or mother or ancestor of either
• Stepfather or stepmother
• Niece or nephew
• Aunt or uncle
• Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law
• The spouse of the beneficiary or of any individual listed above
• A first cousin of the beneficiary

Yes, you can. To get a head start on your expected child's account, you can open an account designating yourself or another family member as the beneficiary, since a Social Security number (SSN) is required for the person being named as a beneficiary. Once you have your child's SSN, you may change the beneficiary on the account.

To avoid tax consequences, it is important that the initial beneficiary be a family member of the expected child, as defined by the IRS.

Yes, multiple accounts can be opened for one beneficiary. For example, a parent and a grandparent can each open an account for the same beneficiary. However, the maximum combined balance for a beneficiary across all 529 accounts offered by the Education Trust of Alaska is $550,000. Once this limit is reached, no additional contributions will be accepted, but earnings may still accrue.

Yes. You can change the account owner at any time by completing the Transfer Form. The relinquishing account owner must complete the form and mail it to the address indicated on the document, and the new account owner must have an open account for the beneficiary. If the new account owner does not currently have an Alaska 529 account for the beneficiary, they must open an account prior to the account owner change. The new account may be opened online, or you may complete the Account Application Form and mail it along with the Transfer Form.

Yes. To set up direct deposit to make a single or recurring contribution, please provide the following information to your employer:

1. Routing number: 011001234 (The Bank of New York Mellon)
2. Your 9 digit Alaska 529 plan account number with a 704 prefix (example: 704A8XXXXXXX)
3. Select checking
4. The amount to be deducted per pay period

The deposited funds will default to your allocation settings for your account. To set future allocations, log in to your account and click "View Details" under the selected beneficiary.

Yes, but before you initiate the rollover process, we recommend contacting the current provider/manager to verify the funds are eligible for a rollover to Alaska 529 and what their requirements are for processing a rollover.

Once you have confirmed your funds are eligible for a rollover:

• Open your Alaska 529 account.
• Complete the Incoming Rollover Form.
• Mail the completed Rollover Form to the address listed on the form. Your rollover should be processed and completed within the next few weeks.

Rollovers are generally tax-free, and rollovers from another 529 plan are limited to once every 12 months for the same beneficiary. If the beneficiary changes, there is no limit on rollovers between 529 plans. You can roll over funds between 529 plans anytime for a different beneficiary as long as that beneficiary is a member of the previous beneficiary's family.

Additional details can be found in our Plan Disclosure Document.

Family members include:

• Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them
• Brother, sister, stepbrother, or stepsister
• Father or mother or ancestor of either
• Stepfather or stepmother
• Niece or nephew
• Aunt or uncle
• Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law
• The spouse of the beneficiary or of any individual listed above
• A first cousin of the beneficiary

Additional details can be found in the Plan Disclosure Document.

The maximum account balance for a beneficiary across all portfolios and accounts is $550,000. It is acceptable for earnings (but not contributions) to cause the total account value to go over this amount. This limit includes contributions made to all qualified tuition programs sponsored by the Education Trust of Alaska for the beneficiary.

For 2025, the maximum annual gift amount is $19,000 per individual per year without paying gift taxes. With a 529, you can contribute up to $95,000 (or $190,000 for a married couple) to a beneficiary in one year and average the gift over five years without paying gift taxes. Future years may differ.

If your beneficiary has leftover savings, you can:

• Request a nonqualified withdrawal.
• Change the beneficiary to an eligible family member.
• Keep your savings in the account in anticipation of future education expenses, such as graduate school.
• Roll over your savings into a beneficiary-owned Roth IRA. Leftover 529 savings can be rolled over into a Roth IRA maintained for the same account beneficiary with a Rollover to Roth IRA Form. The 529 plan account must have been maintained for at least 15 years, and only contributions (and accompanying earnings) made more than five years prior can be rolled over. The amount eligible for rollover each year cannot exceed the IRA contribution limit, and there is an aggregate limit of $35,000.

Please read and/or download the Plan Disclosure Document for additional information. If you have questions about your specific situation, please speak with a tax professional.

If you are the account owner and your child is the beneficiary of the 529 account, the money you have saved is typically considered a parental asset, not a student asset. In that case, the family can expect the student's need-based aid package to be reduced by up to 5.64% of the asset's value.

Withdrawals from grandparent-owned 529 accounts no longer count as income to the student on the Free Application for Federal Student Aid (FAFSA). For more information, visit studentaid.gov/h/apply-for-aid/fafsa.

If you would like your PFD contribution to be deposited into an account owned by someone else, please call 1-888-425-2752 before October 1, 2026.

Be prepared to provide:

• The account owner’s name
• The beneficiary’s name(s)
• The account number

Trump accounts are a new type of investment account created to support long-term savings goals for children.¹

529 accounts are specifically designed for education savings for people of all ages.

Key differences include:

• Tax treatment:
  • 529 account earnings grow tax-deferred, and qualified withdrawals are federal income tax-free when used for eligible education expenses. State income tax treatment of qualified withdrawals varies by state.
  • Trump accounts treat personal contributions differently from federal or state government, charitable, or employer contributions. The principal portion of a withdrawal from personal contributions is tax-free, while earnings are taxed as ordinary income. All portions of a withdrawal from federal or state government, charitable, or employer-contributed funds are generally fully taxable.
  • Both types of accounts are generally funded with after-tax family contributions, and neither offers a federal income tax deduction for those contributions.
• Education expenses:
  • 529 accounts savings may be used for qualified education expenses, including higher education, certain K-12 and apprenticeship program expenses, and student loan repayment. In addition, certain unused 529 assets may be eligible for rollover to a Roth IRA. Each is subject to applicable limits, rules, and requirements.
  • Trump accounts may be used for certain higher education expenses without an early withdrawal penalty. However, as noted above, applicable earnings would generally remain taxable.
• Withdrawals and penalties:
  • 529 account assets may be withdrawn federally tax free when used for qualified education expenses. Non-qualified withdrawals are allowed at any age and may be subject to ordinary income taxes on earnings and an additional 10% federal penalty tax.
  • Trump account withdrawals are generally not allowed before age 18. Assets can be accessed without penalty when the child turns 18 for qualified expenses like education, a first home purchase, or starting a business. Withdrawals are subject to IRA rules and may be taxed as ordinary income.
• Access and ownership rules:
  • 529 accounts generally have no age requirement for withdrawals, the beneficiary may be changed, and the account owner—often a parent or grandparent—maintains control of the account.
  • Trump accounts are controlled by the custodian and generally do not allow withdrawals before the child turns 18, at which point the account becomes a traditional IRA and the child takes control. These accounts also don't allow designated child changes, meaning the account ownership can never be transferred to another person.
• Contributions and limits:
  • 529 accounts do not have an annual contribution limit, though state plan maximum account balances apply. There are no age or income restrictions.
  • Trump accounts allow contributions of up to $5,000 (indexed for inflation) annually, including certain employer and qualified general contributions. Unlike traditional IRAs, a child does not need earned income for contributions to be made. Children born between January 1, 2025 and December 31, 2028 may also be eligible for a one-time $1,000 federal contribution.
  • Employers may contribute to either type of account, though the tax treatment and limits may differ.
• Investment options:
  • 529 accounts typically offer a range of investment options, often including age-based portfolios. Investment changes are generally limited to two per year, though future contributions may be directed to different portfolios at any time.
  • Trump accounts are limited to broad-based, low-cost U.S. stock index mutual funds and exchange traded funds (ETFs).

For families primarily focused on education funding, 529 plan accounts remain a purpose-built solution because of their education-specific tax advantages. Trump accounts may complement, rather than replace, a 529 strategy for families with broader long-term savings goals. Some families may choose to use both—a 529 plan for education-focused savings and another account for broader financial goals. The right approach depends on a family's objectives, time horizon, expected education expenses, and individual tax situation.

¹Children for the Trump accounts are defined as U.S. citizens under the age of 18 with a valid Social Security number. Families should continue to monitor developments regarding Trump accounts and/or consult with a financial professional to discuss their personal financial situations. There may be other material differences between Trump accounts and 529 education savings plan accounts that should be considered prior to investing. This material is provided for general and educational purposes only and is not intended to provide legal, tax, or investment advice. This material does not provide fiduciary recommendations concerning investments or investment management; it is not individualized to the needs of any specific benefit plan or retirement investor, nor is it directed to any recipient in connection with a specific investment or investment management decision. Any tax-related discussion contained in this material, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. The availability of tax benefits may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions, or other factors as applicable. Please consult your independent legal counsel and/or tax professional regarding any legal or tax issues raised in this material. For more information about the details and rules for Trump accounts, please visit https://trumpaccounts.gov.