What is the Schwab 529 Education Savings Plan?

The Schwab 529 Education Savings Plan is available through Charles Schwab & Co., Inc. and is managed by American Century Investment Management, Inc. The plan was created by the Kansas State Legislature under the provisions of Section 529 of the Internal Revenue Code and is administered by the Kansas State Treasurer.

How much can you contribute to a 529 college savings plan?

Typically, you can contribute up to $18,000 a year (or $36,000 for couples) to one or more 529 college savings plans without incurring the gift tax. But it's possible to make a contribution of up to $90,000 ($180,000 for couples) in a single year as long as you treat the gift as occurring over five consecutive years for tax purposes.

Can a 529 savings account be used for education expenses?

The 529 savings plan provides several tax advantages when used for education expenses. Opening a college savings account is a smart way to invest in the education of a family member, friend, or even yourself—and you could even get some tax benefits.