FAQs

529 plans are a tax-advantaged way to save for educational expenses. Contributions are made after-tax, grow tax-free and are distributed tax free for education/college expenses

529 plans are for anyone, regardless of age. There is no maximum age for a 529 plan beneficiary. Assets in a 529 account may be withdrawn tax-free for a beneficiary of any age to pay for any qualified education expense. A 529 account owner may also be their own beneficiary on the account

No, 529 plans can be established in any state, regardless of residency

No, the beneficiary can attend any school in which they can apply for federal financial aid. This could be in any state, and even several schools internationally

No, anyone can contribute to a 529 plan

No, there is no limit to the number of 529 plans a beneficiary can have

No, the account owner always retains control of the assets and ownership does not transfer to the beneficiary at the time of college

There are no income limitations for opening and contributing to a 529 plan - Anyone can open and fund one, regardless of income level

Yes, gifting within a 529 plan is one of the most powerful ways to help save for a loved ones education. Gifting towards a Tomorrow’s Scholar® 529 Plan has never been easier with our gifting platform that accepts online contributions and can be shared with friends and family. Please see the Gifting and Estate Planning page for additional details

The plan has a generous maximum contribution limit of $589,650 per beneficiary. You can contribute as little as $25 a month per investment option through an automatic investment program. Please see the Plan Benefits page for additional details

The Tax ID # for the Tomorrow's Scholar 529 Plan is 39-1835272

Tomorrow's Scholar 529 Plan charges a $25 annual account maintenance fee, however, that fee is waived under the following circumstances:
(1) if the Account Owner or Beneficiary is a full-time Wisconsin resident
(2) if the account balance is greater than $25,000
(3) if there is an automatic investment plan (AIP) or payroll direct deposit of at least $25 per month in an Option selected for investment (active for the 12 previous months without interruption)

There are additional fees charged to invest in the plan's investment options, which are all incorporated into the total expense ratio:
(1) Program Management Fee - covers administrative costs and services, such as recordkeeping, statements, and customer service. 
(2) Board Fee - fee that the Board may collect for the administrative services to the Plan.
(3) Underlying Investment Expenses - The costs to investment in the funds used within the 529 investment options. 
(4) Distribution and Service Fee - Ongoing payments to dealers and financial intermediaries

Total expense ratios will vary by investment option. You can find the range of expense ratios in the plan's Program Description

Yes, it generally makes sense to have a 529 plan account for each beneficiary, as only one beneficiary is allowed for each 529 plan account. Many education savers opt for age-based investment options, which automatically adjust risk levels as the beneficiary grows older. However, if you're saving for two beneficiaries of different ages within a single account, this strategy may not align optimally with each individual's investment timeline

If the child doesn’t go to college or there’s leftover money in a 529 account, you have several flexible options:
(1) Change the beneficiary:
  - You can transfer the funds to another eligible family member without penalty.
(2) Use for other education expenses:
  - Funds can be used for K–12 tuition, certain apprenticeship programs, up to $10,000 in student loan repayments, graduate school, and certain credentialing programs
(3) Roll over to a Roth IRA:   
  - If certain conditions are met, you may roll over up to $35,000 from a 529 to a Roth IRA for the beneficiary.
(4) Withdraw the funds:
  - You can withdraw the money for non-qualified expenses, but you’ll pay income tax and a 10% penalty on the earnings portion

Yes, the plan allows for joint ownership

Yes, you can transfer assets from a custodial account like an UGMA or UTMA to a 529 plan, but there are important considerations:

Assets from an UGMA or UTMA account can be used to fund a custodial 529 plan. The beneficiary must remain the same and must retail control at the age of majority. However, because the funds originally belonged to the minor, they must still be used for their benefit, and the 529 account will be treated as a student asset for financial aid purposes.

As an UGMA/UTMA custodian, you must also notify the Tomorrow's Scholar 529 Plan when the beneficiary has reached the legal age of majority

Yes, you can. To initiate an account for an expected child, you can open a 529 plan and designate yourself or another family member as the beneficiary. To prevent tax implications, the initial beneficiary must be a family member of the expected child as defined by the IRS. Additionally, a Social Security number (SSN) is required for the named beneficiary. Once your child has obtained their SSN, you may update the account to change the beneficiary

Yes, the 2025 tax-deductible amounts are as follows: $5,130 per beneficiary for single filers or married filing joint, OR $2,560 per beneficiary for married filing separate

Taxable Earnings:
Only the earnings portion of the distribution is subject to federal income tax. The original contributions (basis) are not taxed again since they were made with after-tax dollars.

(1) 10% Penalty:
  - A 10% additional tax penalty applies to the earnings portion of the non-qualified withdrawal. Exceptions to the penalty may apply if the beneficiary receives a scholarship, passes away, or becomes disabled.

(2) Reporting:
  - The person who receives the distribution (as listed on Form 1099-Q) is responsible for reporting the taxable earnings on their tax return, whether that is the account owner or the beneficiary.

(3) State Tax Impacts:
  - Some states may recapture previously claimed state tax deductions or credits for non-qualified withdrawals. For the Tomorrow's Scholar 529 Plan, non-qualified withdrawals will be added to Wisconsin income and taxed to the extent the receipt of such amounts results in the additional 10% tax for federal tax purposes but only if the amount was previously claimed as a deduction.

529 plan contributions are free of gift taxes and can help reduce potential estate taxes. Per beneficiary, individuals can contribute a maximum of $19K annually ($38K for married couples) or choose one-time accelerated gifting of five years ($95K/$190K). For gift tax purposes, the assets are considered completed gifts, but the owner of the account controls the assets and withdrawals

While 529 plan contributions are not deductible on your federal income tax return, the earnings grow tax-free, and withdrawals used for qualified education expenses are also tax-free

Contributions that exceed the maximum deduction amount for a tax year may be carried forward to reduce future taxable income. This includes the principal amount for rollovers coming from plans outside WI as well

Yes, 529 plans offer several estate planning benefits that make them a powerful tool for transferring wealth while supporting educational goals:

(1) Contributions Are Treated as Completed Gifts
  - Contributions to a 529 plan are considered completed gifts for federal gift tax purposes. You can contribute up to $19,000 per beneficiary per year (or $38,000 for married couples) without gift tax consequences. You can also elect for accelerate gifting by contributing up to $95,000 (or $190,000 for married couples) as a one-time contribution that is treated as being spread over a 5-year period.

(2) Reduces Taxable Estate
  - Once contributed, the funds are removed from your taxable estate, helping reduce potential estate tax liability.

(3) Multigenerational Planning
  - 529 plans can be used across generations. If the original beneficiary doesn’t use all the funds, you can transfer the account to another qualified family member, allowing the educational legacy to continue.

Please see the Gifting and Estate Planning page for additional details

Contributions to a 529 plan are made with after-tax dollars, meaning they are not deductible on your federal income tax return

No, 529 rollovers to a Roth IRA are not taxable, as long as specific conditions are met. Please view our Secure 2.0 Flyer for more details on the criteria for making a Roth IRA rollover

For a Wisconsin taxpayer to claim the state income tax deduction for their Tomorrow's Scholar 529 Plan contribution for a given tax year, the deadline to make that contribution is April 15th of the following year. For example, contributions made by April 15, 2026, can be used to claim a deduction for the 2025 tax year

Tomorrow's Scholar 529 Plan offers access to a wide array of investment options, share classes, and investment managers. Choose from:

  - 9 age-based portfolios that automatically adjust over time
  - 5 risk-based options
  - 18 single-fund choices to build your own portfolio (including a principal protection option with a guaranteed rate of return)
  - 4 share classes to meet your needs (A, C, C1, and W shares)

Please see the Investment Options page for additional details

Yes, you can change your 529 plan investments. However, please keep in mind that federal law only allows you to change your 529 investment options twice per calendar year for existing funds, and anytime you make new contributions. This gives you flexibility to adjust your strategy based on market conditions or your time horizon

Yes, performance for all of the options offered in the Tomorrow's Scholar 529 Plan is available on the plan's website. Please see the Performance Summary page for additional details

529 funds can be used for a wide array of qualified expenses, including college tuition and fees, on- and off-campus room and board, books and supplies, computers and equipment, K-12 tuition and certain expenses, up to $10k per year ($20k per year beginning January 1, 2026), apprenticeship programs, student loan repayments (up to $10,000 lifetime for the beneficiary of the beneficiary's sibling), certain credentialing expenses, or a rollover to a Roth IRA (conditions apply)

A non-qualified withdrawal is any 529 plan distribution not use for qualified education expenses, such as the items discussed above. If the withdrawal is non-qualified, the earnings portion is subject to federal income tax, a 10% penalty on earnings, and possible state tax recapture if you claimed a state tax benefit 

Either the financial advisor on the account or the account owner can take a distribution from their 529 account by contacting our customer service number at 1-866-677-6933 or by filling out a withdrawal form (available digitally or paper). Withdrawals can also be sent directly to the school. You should take a 529 distribution in the same calendar year that the qualified education expenses are incurred. This ensures the withdrawal matches the timing of the expense and avoids potential tax issues

There are no tax implications when funds are taken out for qualified education expenses. For any non-qualified distributions, taxes and penalties may apply to the earnings portion

You can withdraw the dollar amount of the scholarship award from your 529 plan account without penalty. In this instance, only federal and state income taxes will apply to the earnings and the 10% penalty will be waived

Your Tomorrow’s Scholar 529 account can be used at a wide range of eligible educational institutions - including colleges, universities, vocational and trade schools, community colleges, graduate and postgraduate programs, apprenticeships, and more. To confirm eligibility, contact your school directly or use the Federal School Code Search tool available on the Free Application for Federal Student Aid (FAFSA) website.

529 plan assets typically have a relatively small impact on financial aid eligibility. When owned by a parent, they are considered a parental asset and are assessed at a maximum rate of 5.64% in the federal financial aid formula. 529 accounts owned by the student themselves carry a more significant impact and are assessed at a 20% rate in the federal financial aid formula

Grandparent-owned 529 plans are not reported on the FAFSA and therefore have no immediate impact on financial aid eligibility.  As such, grandparent-owned 529 accounts are one of the most powerful ways to save for education without impacting financial aid eligibility for the beneficiary

Tomorrow's Scholar 529 Plan account balances are excluded from calculation of state funded financial aid awards

For broker dealers that hold direct through Voya, please complete the 529 account application (available digitally or paper). For broker dealers that are omnibus with Voya, please coordinate with your back office to open an account

There is a $250 per option minimum contribution amount. That minimum is waived for account owners that make contributions through AIPs or payroll direct deposits of $25 or more per month. Contributions can be made in a variety of ways, including by check, phone, AIP, and more

Yes, you may change account owners on your Tomorrow's Scholar 529 Plan account. Please use the Change of Registration form to make the change. A change in account owner requires a Medallion Signature Guarantee

Yes, you may change beneficiaries on your Tomorrow's Scholar 529 Plan account. Please use the Change of Beneficiary form to make the change

Anyone can be a 529 account owner, including a parent, grandparent, other relative, or family friend. However, account owners are required to be a U.S. citizen or resident and over the age of 18

Yes, successor owners may be added to you Tomorrow's Scholar 529 Plan account. Please use the Account Maintenance form to add a successor owner

Yes, Tomorrow's Scholar 529 Plan allows for incoming rollovers. Voya will also reimburse rollover fees, if any, from your previous 529 plan provider up to $75