State of Delaware

05/24/2024 | Press release | Distributed by Public on 05/24/2024 07:13

Delawareans Gear Up to Celebrate 529 Day


Investing in tomorrow while honoring the past

As the nation wraps up its Memorial Day observances, Delawareans eagerly anticipate another significant celebration just two days later. May 29th marks 529 Day, a time aimed at highlighting the critical importance of saving for higher education through 529 education savings plans. These plans, named after Section 529 of the Internal Revenue Code, offer families a strategic and tax-advantaged method to prepare for future education expenses.

Reflecting on the solemnity of Memorial Day, State Treasurer Colleen Davis emphasized the significance of looking toward the future while honoring the sacrifices of the past.

"529 Day serves as a poignant reminder of the importance of saving for college and the profound impact it can have on a student's future," Davis said.

At the forefront of education savings in Delaware is the DE529 Education Savings Plan, sponsored by the State and managed by Fidelity Investments. This program offers Delawareans a tax-advantaged avenue to save for higher education expenses, applicable at accredited colleges and universities nationwide, as well as many vocational or technical schools.

"Beyond alleviating financial concerns for families entering the college years, DE529 savings offer additional benefits," Treasurer Davis highlighted. "Not only does money grow tax-free, but withdrawals for qualified education expenses such as tuition, fees, and books are exempt from federal and Delaware income tax."

In a testament to the program's growth and support, new accounts in the DE529 Education Savings Plan surged to almost 3,000 in 2023, reflecting a remarkable increase of 36% over the previous year. Additionally, contributions to DE529 accounts totaled $59 million last year, indicating a robust commitment to securing educational futures.

Additionally, the DE529 Education Savings Plan continues to receive validation in the investment industry. In its most recent evaluation, Morningstar, the country's most widely cited and influential investment plan rating group upgraded the DE529 Education Savings Plan from Bronze to Silver status.

Demonstrating bipartisan support, members of the General Assembly championed education savings through the passage of HCR 141, led by Representative Krista Griffith and Senator Trey Paradee, officially designating May 29th as DE529 Day in Delaware.

To learn more about the DE529 Education Savings Plan and embark on your journey to secure educational futures, visit 529.delaware.gov.