Total Withdrawals for College-Age Beneficiaries Could Cover Full Annual Tuition Costs for 118,000+ Students
Dresher, PA—Ascensus—whose technology and expertise help millions of people save for retirement, education, and healthcare—has released data from its 529 platform during the 2019 “back to school” and tuition payment season that highlights the volume of education savings that parents and grandparents have tapped into to help fund beneficiaries’ education. From June 1 through August 31, 2019, 529 account owners made more than 491,000 withdrawals totaling more than $3.25 billion in assets.
Ascensus currently administers 529 plans across 20 states and the District of Columbia and has been ranked the #1 529 program manager in the nation for assets under management. This data offers a comprehensive view into how savers across various demographics in the U.S. are leveraging their 529 savings to finance rising education expenses.
For 529 accounts with beneficiaries ages 17 and over, who are approaching or at college or trade school level:
- 454,000+ qualified withdrawals
- More than $3 billion in total savings withdrawn, which could cover the full annual tuition costs for a public four-year out-of-state college for 118,491 students2
- $8,980 average withdrawal per beneficiary, which could cover 88% of the annual tuition cost of a public four-year in-state college
For 529 accounts with beneficiaries ages 16 and under, who are receiving their primary education:
- 37,000+ qualified withdrawals
- More than $130 million in total savings withdrawn, which could cover the full tuition costs of 12,218 K-12 private school students3
- $4,487 average withdrawal per beneficiary, which could cover about 42% of the national average annual cost of private primary school tuition
“We’re thrilled to see hundreds of thousands of 529 account owners tapping into the funds they’ve worked so hard to save,” states Kevin Cox, head of Ascensus’ government savings division. “We recognize that it’s often difficult for American families to prioritize savings, and nothing makes us happier than to see so many Americans providing the gift of education with the savings they’ve accumulated in a 529.”
Ascensus is the largest independent recordkeeping services provider, third-party administrator, and government savings facilitator in the United States. The firm delivers technology and expertise to help millions of people save for what matters most—retirement, education, and healthcare. For more information about Ascensus, visit ascensus.com. Explore the firm’s latest data and insights on savings behaviors at pulse.ascensus.com and view career opportunities at careers.ascensus.com.
Before investing in any 529 plan, please consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s 529 plan.
When you invest in a 529 plan, you are purchasing municipal securities whose value may vary based on market conditions. Investment returns are not guaranteed, and you could lose money by investing in a 529 plan. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences.
The availability of tax advantages or other benefits may be contingent on meeting other requirements. Please consult your financial, tax, or other advisors to learn more about how state-based benefits and limitations would apply to your specific circumstance. You may also contact your home state’s 529 plan(s), or any other 529 plan, to learn more about those plans’ features, benefits and limitations.
529 College Savings Quarterly Data Update: Q2 2019, August 2019, Strategic Insight.
Trends in College Pricing 2018, The College Board, October 2018.
Average Private School Tuition Cost, 2019-20, Private School Review, https://www.privateschoolreview.com/tuition-stats/private-school-cost-by-state