Quick Summary: There are no age or time limits on a 529 plan account. The account owner can contribute at any age, and funds can remain invested indefinitely. Other types of college savings plans and financial aid programs may have age or time restrictions.
Although there are no time or age limits on contributing to or using a 529 college savings plan, other types of financial aid do expire. Here is what you need to know about age and time limits on 529 plans, Coverdell ESAs, military benefits, federal student aid and tax credits.
Does a 529 plan have an age limit?
No. There are no time or age limits on using a state 529 plan. Money can be kept in a 529 plan account indefinitely, and the account owner controls when and how the funds are used. The beneficiary can be any age, from a newborn to a retiree going back to school.
529 plans can be used for graduate school, not just undergraduate school, and the beneficiary can be changed to another qualifying family member at any time. There is also no age limit on contributions to a 529 plan.
What are the tax benefits of keeping money in a 529 plan long-term?
Earnings in a 529 plan grow free from federal income tax, and withdrawals are also tax-free when used for qualified education expenses. Many states also offer a state income tax deduction or credit for contributions.
These tax benefits continue regardless of how long money stays in the account, giving families flexibility to save early and use the funds whenever they are needed.
Can 529 plan funds be used for student loan repayment or rolled into a Roth IRA?
Yes. Families with leftover 529 funds have two relatively new options. Up to $10,000 in 529 funds (a lifetime limit per borrower) can be used for student loan repayment for the beneficiary or their siblings.
Beginning in 2024, unused 529 funds can also be rolled over into a Roth IRA for the beneficiary, subject to a $35,000 lifetime cap and annual Roth IRA contribution limits. The 529 plan account must have been open for at least 15 years to qualify for the Roth IRA rollover.
Do other college savings plans have age limits?
Other types of college savings plans, such as prepaid tuition plans and Coverdell education savings accounts, may have time and age limits.
- Several prepaid tuition plans have time limits on the use of the tuition benefits. In Alabama, Florida, Illinois, Maryland, Nevada, Texas, Washington and West Virginia, the prepaid tuition plan must be used within 10 years of the beneficiary’s projected college entrance date, excluding time spent serving in the U.S. Armed Forces. In Michigan, the expiration occurs within 15 years. In Mississippi, eight years. In Virginia, 30 years.
- Investors in the Private College 529 Plan must use their tuition certificates within 30 years.
- A few prepaid tuition plans have age limits, including Nevada (age 30), Ohio (age 28 unless still in college) and South Carolina (age 30, with extensions of up to four years for military service).
- Coverdell Education Savings Accounts must be used within 30 days after the beneficiary reaches age 30, unless the beneficiary is a special needs beneficiary.
- ABLE accounts are limited to beneficiaries who became disabled before age 46. (Prior to 2026, the age-of-onset threshold was age 26.)
Do military education benefits expire?
Some military student aid programs do expire.
- Montgomery G.I. Bill education benefits expire within 10 years after separation from active duty service.
- Post-9/11 G.I. Bill education benefits expire within 15 years after separation from active duty service for servicemembers whose service ended in 2012 or an earlier year. The benefits do not expire for servicemembers whose service ended in 2013 or a later year.
Are there age limits on federal student financial aid?
There are no time or age limits on federal student aid. However, some types of financial aid are limited to a first Bachelor’s degree. This includes the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG) and Teacher Education Assistance and Higher Education Grant (TEACH Grant).
Federal student loans are available to students who already have a Bachelor’s degree, but do have annual and aggregate loan limits. Federal Work-Study (FWS) is also available to students who have a Bachelor’s degree.
In addition, the Free Application for Federal Student Aid (FAFSA) considers a student to be an independent student if they will be 24 years old or older as of December 31 of the academic year for which financial aid is sought. This usually results in more financial aid for the student, since parental information is no longer required on the student’s FAFSA.
Use our Financial Aid Calculator to estimate your financial need.
What about age limits on tax credits and scholarships?
The American Opportunity Tax Credit (AOTC) is limited to four years of postsecondary education and four tax years. Other than that, there are no time limits on use of the AOTC. The Lifetime Learning Tax Credit (LLTC) has no age restrictions and can be used indefinitely, so long as the taxpayer has qualified expenses for tuition and related fees.
Some private scholarships are restricted to dependent students (e.g., under age 24). Others are limited to older students, such as displaced homemakers seeking a college degree (e.g., age 30 or older). Most scholarships, however, do not have age limits.
Key Takeaways
- 529 plan accounts have no age or time limits. The account owner can contribute and withdraw funds at any age, and money can remain invested indefinitely.
- Earnings grow free from federal income tax, and withdrawals used for qualified education expenses are also tax-free.
- Leftover 529 funds can be used for student loan repayment (up to $10,000 per borrower) or rolled into a Roth IRA for the beneficiary (up to $35,000 lifetime).
- Other savings vehicles like Coverdell ESAs and prepaid tuition plans do have age and time limits.
- Federal student aid has no age limits, but some grants are restricted to first-time Bachelor’s degree students.
- Many states offer a state income tax deduction or credit for 529 plan contributions, adding to the plan’s long-term value.
Yes. There is no age limit on 529 plan beneficiaries. Adults of any age can be named as the beneficiary and use 529 funds for qualified education expenses, including tuition, fees, books, room and board, and even computer equipment. This applies to undergraduate, graduate and vocational programs at eligible institutions.
No. Money in a 529 plan account never expires. If the original beneficiary does not attend college, the account owner can change the beneficiary to another qualifying family member, use the funds for student loan repayment (up to $10,000), roll up to $35,000 into a Roth IRA for the beneficiary or simply keep the money invested until it is needed.
No. There is no maximum age for making contributions to a 529 plan. Grandparents, other family members and even the beneficiary can contribute at any age, as long as the account has not reached the state’s aggregate contribution limit.
Coverdell Education Savings Account funds must be distributed within 30 days after the beneficiary turns 30, unless the beneficiary is a special needs individual. Any remaining earnings on a non-qualified distribution are subject to income tax and a 10% penalty. To avoid this, families can roll Coverdell funds into a 529 plan for the same beneficiary before the age-30 deadline.
Yes. 529 plan funds can be used for qualified expenses at any eligible postsecondary institution, including graduate and professional degree programs. This covers tuition, fees, books, supplies, room and board, and computer equipment for students enrolled at least half-time.
There are no age limits on federal student aid. However, students who are 24 or older are considered independent on the FAFSA, which means parental income and assets are not factored into the aid calculation. This often results in a higher aid eligibility. Some federal grants, like the Pell Grant, are limited to students who have not yet earned a Bachelor’s degree.
