Charles Schwab & Co., Inc (Schwab) is here to support your education needs, no matter where you are on your journey.
A portfolio that can change with you
Not only does Schwab let you choose between a variety of investment options, but you can also change your selections twice per calendar year as authorized by the IRS.
For example, if you know you have a child who’s graduating early, you may want to change to a portfolio designed for shorter-term investing, like a money market portfolio.
How Schwab helps keep your investments secure
The Schwab 529 plan includes multiple investment options from numerous fund companies to help you diversify your portfolio.
This means your money is invested across multiple sectors and investment styles.
Most of these investment options are part of Schwab’s Mutual Fund OneSource® service and Schwab Affiliate Funds.
529 education plan FAQ
You have to be a U.S. citizen, resident alien or U.S. business entity to open and invest in the plan.
For designated beneficiaries, you’ll need each person's:
- Social Security number.
- Date of birth.
- Address.
To set up automatic deposits, you’ll need your bank’s routing and account number.
It depends. If the account is owned by a parent, the U.S. Department of Education says that it counts as an asset when determining eligibility for financial aid.
There’s no impact if the account is owned by another relative like a grandparent, aunt or uncle.
We recommend you consult with a tax advisor for questions about how a qualified 529 plan could affect financial aid eligibility.
If you want to keep the tax benefits of the account, you can choose a new beneficiary as long as they’re an eligible family member of the current beneficiary. This could be a brother, sister, son or daughter.
You can also withdraw the funds, but there may be a 10% penalty on your earnings plus income tax. Exceptions apply, like disability, death, scholarships or rollovers to a Roth IRA.
Important information from USAA Investment Services Company (ISCO):
Review our relationship with you in our Relationship Summary PDF.
Important Information from Schwab:
Before investing, carefully consider the plan's investment objectives, risks, charges, and expenses. This information and more about the plans can be found in the Schwab 529 Education Savings Plan Guide and Participation Agreement available from Charles Schwab & Co., Inc., and should be read carefully before investing.
You may request a Schwab 529 Education Savings Plan Guide and Participation Agreement by calling 888-903-3863 or going to schwab.com/529. If you are not a Kansas taxpayer, consider before investing whether your or the beneficiary's home state offers a 529 plan that provides its taxpayers with state tax and other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available in such state's qualified tuition program. Tax and financial aid treatment of 529 plans is subject to change. As with any investment, it is possible to lose money by investing in this plan.
Learn more about USAA Investment Services Company Opens in a New Window or Charles Schwab Opens in a New Window, Inc. on FINRA's BrokerCheck website.