Why Alaska 529

It only takes a spark to get a child’s imagination going. Whatever sparks your child’s curiosity today, put an Alaska 529 account in motion so you can prepare for tomorrow.

 

Since 2001, Alaska 529 has made it easy to save for education and study anywhere. We offer unique features, such as the ability for Alaskan residents to invest in education through the PFD and the University of Alaska Portfolio, that provide benefits to future University of Alaska students. Although Alaska is in the name, anyone can invest in the plan, regardless of state residency.

 

Open an account today with as little as $25, and put time on your side for a future full of potential.

 

 

Alaska 529 Advantages

 

Alaska 529 offers an affordable and flexible approach to investing in your or your child's future education. For a quick overview on how saving with Alaska 529 can help you reach your future goals, view our informative Alaska 529 Advantages infographic.

CONTRIBUTION OPTIONS
  • All it takes is $25 to get started.
  • You can save regularly with automatic monthly contributions (AMC). 
  • You can increase or decrease contributions at any time.
  • You can contribute half of a PFD by answering “Yes” to the Alaska 529 question on the PFD application each year. Full PFD contributions are also available via direct deposit. Learn more.

Determine who will serve as the account holder and beneficiary of record for the Alaska 529 account. Consider adding a successor account holder to take over the account in the event of unforeseen circumstances.

INVESTMENT OPTIONS
  • Since 2001, Alaska 529 has partnered with T. Rowe Price, a global investment firm, to explore the investment options that are right for you.
  • Save with the University of Alaska Portfolio, a balanced portfolio that offers the UA Tuition-Value Guarantee, which allows you to purchase UA tuition credits at current rates for use in the future.

 

FLEXIBILITY
  • You control the account. There are no annual account fees or time restrictions on your account.
  • You can invest any amount up to the maximum of $475,000 per beneficiary.
  • Change your beneficiary at any time.
  • Non-resident beneficiaries may be eligible for resident tuition at the University of Alaska.

Research the investment options and choose one or more for an investment strategy that works best for you.

 

Research the investment options and choose one or more for an investment strategy that works best for you.

 

 

 

 

TAX BENEFITS
  • Any earnings are tax-deferred, and because you don’t pay annual taxes on account earnings, your balance can grow faster than a taxable account over the same period.
  • You can withdraw the money tax-free anytime—as long as it’s used to pay for qualified education expenses. However, earnings are subject to tax and a 10% penalty if used for nonqualified reasons.

 

 

Wondering how much you will need to save? Use the College Savings Planner to help you set a goal.

 

 

 

 

Wondering how much you will need to save? Use the College Savings Planner to help you set a goal.

FAMILY AND FRIENDS
  • Grandparents, aunts, uncles, friends: Anyone can open or contribute to an Alaska 529 account. Learn more about saving for a loved one.
  • Get an early start on saving for your child’s education. If you are expecting, open an account now and ask family and loved ones to celebrate by contributing a gift to your baby’s education with the GoTuition® gifting portal.

 

Decide how you will provide funding for the account. You can invest a PFD, make an initial contribution, or make a recurring contribution through Automatic Monthly Contributions (AMC) or payroll deduction. The minimum contribution to get started is $25.

 

 

 

 

Decide how you will provide funding for the account. You can invest a PFD, make an initial contribution, or make a recurring contribution through Automatic Monthly Contributions (AMC) or payroll deduction. The minimum contribution to get started is $25.

 

 

 

 

 

Decide how you will provide funding for the account. You can invest a PFD, make an initial contribution, or make a recurring contribution through Automatic Monthly Contributions (AMC) or payroll deduction. The minimum contribution to get started is $25.

Decide how you will provide funding for the account. You can invest a PFD, make an initial contribution, or make a recurring contribution through Automatic Monthly Contributions (AMC) or payroll deduction. The minimum contribution to get started is $25.

ONE PLAN, MANY PATHS
  • Use your savings at nearly any accredited college, university, vocational, trade, or graduate institution in the U.S. and some international schools for qualified expenses.
  • You can use your savings for tuition at K–12 public, private, or religious schools.+
  • Savings can be used to pay for fees, books, supplies, and equipment required for apprenticeships, on-the-job training, and classroom instruction.
  • You can pay for a qualified education loan of up to $10,000 lifetime maximum for your beneficiary or their sibling.

Call an Education Savings Specialist at 1-866-277-1005. We’ll be glad to give you whatever help you may need.

 

Call an Education Savings Specialist at 1-866-277-1005. We’ll be glad to give you whatever help you may need.

CHART YOUR PATH WITH TOOLS AND RESOURCES
  • Wondering how much college could cost? Our College Savings Planner estimates future education expenses and helps predict how much you may need to save to stay on track with your college savings goals.
  • Chart your course. Use the PFD Planner to see how contributing a PFD can help save for future education expenses.
  • Receive gifts with the GoTuition® gifting portal, a convenient way for friends and family to give online. Learn more.
  • The Education Planning Center is a online tool that helps you stay on track with savings goals and provides information that will help you with your child’s education journey.

 

READY TO GET STARTED?

Alaska 529 is a tax-advantaged way for families to invest money for education-related expenses. The “529” refers to the section of the Internal Revenue Code that created these plans.

In general, assets in the parents’ names (such as 529 accounts or taxable accounts) have minimal impact on a student’s potential financial aid, since a smaller percentage of their value is included in the Expected Family Calculation (EFC). For more information, visit Federal Student Aid or consult a financial aid advisor.

Typically, a parent or loved one opens the account and names a child or other loved one as the beneficiary. If your beneficiary doesn’t continue his or her education post high school, you can request a distribution, as a nonqualified withdrawal, or change the beneficiary tax-free to an eligible family member as defined by the IRS.

 

Nonqualified distributions may be subject to federal and state income taxes, in addition to a 10% federal tax penalty. A distribution is exempt from the 10% penalty (but not the taxes) in the following situations:

 

  • Receipt of scholarship by the beneficiary (up to the amount of the scholarship)
  • Death of the beneficiary
  • Disability of the beneficiary
  • Attendance at a U.S. military academy (up to the amount of the cost of attendance)

You can use the Federal School Code Search for a complete list of eligible colleges, universities, and vocational schools. In addition, Alaska 529 can be used to pay for tuition expenses at K–12 public, private, and religious schools (FAFSA codes are not assigned for K–12 schools).+ Costs associated with apprenticeship programs are also now eligible as long as the program is registered with the U.S. Department of Labor.

If your beneficiary receives a scholarship, you can use the savings to pay any education-related expenses outside of the received scholarship, allot unused savings toward postgraduate education, change the beneficiary to an eligible family member as defined by the IRS, or request distributions up to the amount of the scholarship penalty-free.

HELP SUPPORT YOUR GRANDCHILD OR LOVED ONE’S EDUCATION JOURNEY

Anyone can open and contribute to an Alaska 529 account. Whether you’re a grandparent, family member, or friend, it’s a great way to save for a child’s education. You can open an account of your own or make a gift contribution to any Alaska 529 account.

 

There are no limits on age, income, or state of residency. And you can invest any amount as long as it does not exceed the maximum overall limitation of $475,000 per beneficiary.

IMPORTANT DETAILS ABOUT OPENING AN ACCOUNT FOR A LOVED ONE
  • Contributions to an Alaska 529 are removed from your taxable estate and considered a gift to the beneficiary. However, you remain in control of the assets.
  • You can select investment options best suited for helping your loved one achieve their education goals.
  • You can adjust your contributions as needed.
  • You control when distributions are taken.
  • You determine if and when the beneficiary is ready to manage his or her account.
  • Generally, the maximum annual gift amount is $15,000 per individual per year without paying gift taxes. With a 529, you can contribute up to $75,000 (or $150,000 for a married couple) to a beneficiary in one year and average the gift over five years without paying gift taxes, as long as no other gifts are made to the beneficiary during the five-year period. Consult a tax professional for details, as gift and estate taxes can be complex.

GIVE THE GIFT OF EDUCATION

Instead of another tangible gift they could quickly outgrow, give them a gift that could last a lifetime—the gift of education. You can make a gift contribution to an existing account, or you can choose to open your own account for the gift recipient. A gift contribution can be made in two ways: You can ask the account holder to send you a link to the gift recipient’s GoTuition® gifting portal profile, or you can download the Gift Contribution Slip and mail in the contribution (minimum contribution is $25).

 

 

Cards are available to print and send to the gift recipient to let them know about your contribution. Feel free to select from the options below.

Happy Holidays Card

Happy Birthday Card

Congratulations Card

In Memory Of Card

A Gift For You Card