26 U.S.C. § 529

The date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001, referred to in subsec. (e)(3)(B)(ii)(I), is the date of enactment of Pub. L. 107–16, which was approved June 7, 2001.

The date of the enactment of this paragraph, referred to in subsec. (e)(5)(A), probably means the date of enactment of Pub. L. 105–34, which enacted subsec. (e)(5) and which was approved Aug. 5, 1997.

The Higher Education Act of 1965, referred to in subsec. (e)(5), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219. Title IV of the Act is classified generally to subchapter IV (§ 1070 et seq.) of chapter 28 of Title 20, Education. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 20 and Tables.

The National Apprenticeship Act, referred to in subsec. (f)(3)(B), is act Aug. 16, 1937, ch. 663, 50 Stat. 664, which is classified generally to chapter 4C (§ 50 et seq.) of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 50 of Title 29 and Tables.

2025—Subsec. (c)(3)(C)(i)(III). Pub. L. 119–21, § 70117(a), struck out “before January 1, 2026,” before “to an ABLE account”.

Subsec. (c)(7). Pub. L. 119–21, § 70413(a)(1), amended par. (7) generally. Prior to amendment, text read as follows: “Any reference in this subsection to the term ‘qualified higher education expense’ shall include a reference to expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.”

Subsec. (e)(3)(A). Pub. L. 119–21, § 70413(b)(1), which directed that the “last sentence of section 529(e)(3)” be amended by substituting “$20,000” for “$10,000”, was executed by making the substitution in the concluding provisions of subpar. (A) of par. (3), to reflect the probable intent of Congress.

Subsec. (e)(3)(C). Pub. L. 119–21, § 70414(a), added subpar. (C).

Subsecs. (f), (g). Pub. L. 119–21, § 70414(b), added subsec. (f) and redesignated former subsec. (f) as (g).

2022—Subsec. (c)(3)(E). Pub. L. 117–328, § 126(a), added subpar. (E).

Subsec. (d). Pub. L. 117–328, § 126(c), designated existing provisions as par. (1), inserted heading, substituted “by this paragraph” for “by this subsection”, and added par. (2).

2019—Subsec. (c)(8). Pub. L. 116–94, § 302(a), added par. (8).

Subsec. (c)(9). Pub. L. 116–94, § 302(b)(1), added par. (9).

2018—Subsec. (c)(3)(B)(v). Pub. L. 115–141, § 101(l)(15), substituted “American Opportunity” for “Hope” in heading.

Subsec. (c)(6). Pub. L. 115–141, § 401(a)(127), substituted “a Coverdell” for “an Coverdell”.

Subsec. (e)(3)(A). Pub. L. 115–141, § 401(a)(128), substituted comma for semicolon at end of cl. (i) and inserted “, and” at end of cl. (ii).

2017—Subsec. (c)(3)(C)(i). Pub. L. 115–97, § 11025(a), added subcl. (III) and inserted concluding provisions.

Subsec. (c)(7). Pub. L. 115–97, § 11032(a)(1), added par. (7).

Subsec. (e)(3)(A). Pub. L. 115–97, § 11032(a)(2), inserted at end of concluding provisions “The amount of cash distributions from all qualified tuition programs described in subsection (b)(1)(A)(ii) with respect to a beneficiary during any taxable year shall, in the aggregate, include not more than $10,000 in expenses described in subsection (c)(7) incurred during the taxable year.”

2015—Subsec. (c)(3)(D). Pub. L. 114–113, § 302(c)(1), added subpar. (D).

Pub. L. 114–113, § 302(b)(1), struck out subpar. (D). Text read as follows: “For purposes of applying section 72—

“(i) to the extent provided by the Secretary, all qualified tuition programs of which an individual is a designated beneficiary shall be treated as one program,

“(ii) except to the extent provided by the Secretary, all distributions during a taxable year shall be treated as one distribution, and

“(iii) except to the extent provided by the Secretary, the value of the contract, income on the contract, and investment in the contract shall be computed as of the close of the calendar year in which the taxable year begins.”

Subsec. (e)(3)(A)(iii). Pub. L. 114–113, § 302(a)(1), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “expenses paid or incurred in 2009 or 2010 for the purchase of any computer technology or equipment (as defined in section 170(e)(6)(F)(i)) or Internet access and related services, if such technology, equipment, or services are to be used by the beneficiary and the beneficiary’s family during any of the years the beneficiary is enrolled at an eligible educational institution.”

2014—Subsec. (b)(4). Pub. L. 113–295 substituted “Limited” for “No” in heading and “may, directly or indirectly, direct the investment of any contributions to the program (or any earnings thereon) no more than 2 times in any calendar year.” for “may not directly or indirectly direct the investment of any contributions to the program (or any earnings thereon).” in text.

2009—Subsec. (e)(3)(A). Pub. L. 111–5 added cl. (iii) and concluding provisions.

2006—Subsec. (f). Pub. L. 109–280, which directed the addition of subsec. (f) to section 529, without specifying the act to be amended, was executed by making the addition to this section, which is section 529 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.

2005—Subsec. (c)(6). Pub. L. 109–135 substituted “Coverdell education savings account” for “education individual retirement account”.

2004—Subsec. (c)(5)(B). Pub. L. 108–311, § 406(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The taxes imposed by chapters 12 and 13 shall apply to a transfer by reason of a change in the designated beneficiary under the program (or a rollover to the account of a new beneficiary) only if the new beneficiary is a generation below the generation of the old beneficiary (determined in accordance with section 2651).”

Subsec. (e)(2)(B). Pub. L. 108–311, § 207(21), substituted “subparagraphs (A) through (G) of section 152(d)(2)” for “paragraphs (1) through (8) of section 152(a)”.

2002—Subsec. (e)(3)(B)(i). Pub. L. 107–147 substituted “subsection (b)(6)” for “subsection (b)(7)”.

2001—Pub. L. 107–16, § 402(a)(4)(D), struck out “State” before “tuition” in section catchline.

Subsec. (a). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

Subsec. (b). Pub. L. 107–16, § 402(a)(4)(C), substituted “Qualified tuition” for “Qualified State tuition” in heading.

Subsec. (b)(1). Pub. L. 107–16, § 402(a)(1), (4)(A), in introductory provisions, substituted “qualified tuition” for “qualified State tuition” and inserted “or by 1 or more eligible educational institutions” after “thereof”, and added concluding provisions.

Subsec. (b)(1)(A)(ii). Pub. L. 107–16, § 402(a)(2), inserted “in the case of a program established and maintained by a State or agency or instrumentality thereof,” before “may make”.

Subsec. (b)(2). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

Subsec. (b)(3) to (7). Pub. L. 107–16, § 402(a)(3)(A), (4)(A), redesignated pars. (4) to (7) as (3) to (6), respectively, substituted “qualified tuition” for “qualified State tuition” wherever appearing, and struck out heading and text of former par. (3). Text read as follows: “A program shall not be treated as a qualified State tuition program unless it imposes a more than de minimis penalty on any refund of earnings from the account which are not—

“(A) used for qualified higher education expenses of the designated beneficiary,

“(B) made on account of the death or disability of the designated beneficiary, or

“(C) made on account of a scholarship (or allowance or payment described in section 135(d)(1)(B) or (C)) received by the designated beneficiary to the extent the amount of the refund does not exceed the amount of the scholarship, allowance, or payment.”

Subsec. (c)(1)(A), (3)(A). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

Subsec. (c)(3)(B). Pub. L. 107–16, § 402(b)(1), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: “Any benefit furnished to a designated beneficiary under a qualified tuition program shall be treated as a distribution to the beneficiary.”

Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

Subsec. (c)(3)(B)(vi). Pub. L. 107–22 substituted “Coverdell education savings” for “education individual retirement” in heading.

Subsec. (c)(3)(C). Pub. L. 107–16, § 402(c)(3), inserted “or programs” after “beneficiaries” in heading.

Subsec. (c)(3)(C)(i). Pub. L. 107–16, § 402(c)(1), substituted “transferred—” for “transferred”, added subcl. (I), and designated existing provisions “to the credit” as subcl. (II).

Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

Subsec. (c)(3)(C)(ii). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

Subsec. (c)(3)(C)(iii). Pub. L. 107–16, § 402(c)(2), added cl. (iii).

Subsec. (c)(3)(D)(i). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

Subsec. (c)(3)(D)(ii). Pub. L. 107–16, § 402(g)(1), inserted “except to the extent provided by the Secretary,” before “all distributions”.

Subsec. (c)(3)(D)(iii). Pub. L. 107–16, § 402(g)(2), inserted “except to the extent provided by the Secretary,” before “the value”.

Subsec. (c)(6). Pub. L. 107–16, § 402(a)(3)(B), added par. (6).

Subsecs. (d), (e)(1)(A), (C). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

Subsec. (e)(2)(D). Pub. L. 107–16, § 402(d), added subpar. (D).

Subsec. (e)(3)(A). Pub. L. 107–16, § 402(f), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “The term ‘qualified higher education expenses’ means tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution.”

Subsec. (e)(3)(B)(i). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

Subsec. (e)(3)(B)(ii). Pub. L. 107–16, § 402(e), reenacted heading without change and amended text of cl. (ii) generally. Prior to amendment, text read as follows: “The amount treated as qualified higher education expenses by reason of the preceding sentence shall not exceed the minimum amount (applicable to the student) included for room and board for such period in the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, 20 U.S.C. 1087ll, as in effect on the date of the enactment of this paragraph) for the eligible educational institution for such period.”

Subsec. (e)(4). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

2000—Subsec. (e)(3)(B). Pub. L. 106–554 struck out “under guaranteed plans” after “students” in heading.

1998—Subsec. (c)(3)(A). Pub. L. 105–206, § 6004(c)(2), substituted “section 72” for “section 72(b)”.

Subsec. (e)(2). Pub. L. 105–206, § 6004(c)(3), reenacted heading without change and amended text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘member of the family’ means—

“(A) an individual who bears a relationship to another individual which is a relationship described in paragraphs (1) through (8) of section 152(a), and

“(B) the spouse of any individual described in subparagraph (A).”

1997—Subsec. (b)(5). Pub. L. 105–34, § 211(b)(4), inserted “directly or indirectly” after “may not”.

Subsec. (c)(2). Pub. L. 105–34, § 211(b)(3)(A)(i), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “In no event shall a contribution to a qualified State tuition program on behalf of a designated beneficiary be treated as a taxable gift for purposes of chapter 12.”

Subsec. (c)(3)(A). Pub. L. 105–34, § 211(d), substituted “section 72(b)” for “section 72”.

Subsec. (c)(4). Pub. L. 105–34, § 211(b)(3)(B), amended heading and text of par. (4) generally. Prior to amendment, text read as follows: “The value of any interest in any qualified State tuition program which is attributable to contributions made by an individual to such program on behalf of any designated beneficiary shall be includible in the gross estate of the contributor for purposes of chapter 11.”

Subsec. (c)(5). Pub. L. 105–34, § 211(b)(3)(A)(ii), amended heading and text of par. (5) generally. Prior to amendment, text read as follows: “For purposes of section 2503(e), the waiver (or payment to an educational institution) of qualified higher education expenses of a designated beneficiary under a qualified State tuition program shall be treated as a qualified transfer.”

Subsec. (d). Pub. L. 105–34, § 211(e)(2)(A), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows:

“(d) Reporting Requirements.—

“(1) In general.—If there is a distribution to any individual with respect to an interest in a qualified State tuition program during any calendar year, each officer or employee having control of the qualified State tuition program or their designee shall make such reports as the Secretary may require regarding such distribution to the Secretary and to the designated beneficiary or the individual to whom the distribution was made. Any such report shall include such information as the Secretary may prescribe.

“(2) Timing of reports.—Any report required by this subsection—

“(A) shall be filed at such time and in such matter as the Secretary prescribes, and

“(B) shall be furnished to individuals not later than January 31 of the calendar year following the calendar year to which such report relates.”

Subsec. (e)(1)(B). Pub. L. 105–34, § 1601(h)(1)(A), substituted “subsection (c)(3)(C)” for “subsection (c)(2)(C)”.

Subsec. (e)(1)(C). Pub. L. 105–34, § 1601(h)(1)(B), inserted “(or agency or instrumentality thereof)” after “local government”.

Subsec. (e)(2). Pub. L. 105–34, § 211(b)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘member of the family’ has the same meaning given such term as section 2032A(e)(2).”

Subsec. (e)(3). Pub. L. 105–34, § 211(a), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “The term ‘qualified higher education expenses’ means tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution (as defined in section 135(c)(3)).”

Subsec. (e)(5). Pub. L. 105–34, § 211(b)(2), added par. (5).

Pub. L. 119–21, title VII, § 70117(b), July 4, 2025, 139 Stat. 167, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2025.”

Pub. L. 119–21, title VII, § 70413(a)(2), July 4, 2025, 139 Stat. 219, provided that: “The amendment made by this subsection [amending this section] shall apply to distributions made after the date of the enactment of this Act [July 4, 2025].”

Pub. L. 119–21, title VII, § 70413(b)(2), July 4, 2025, 139 Stat. 219, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 2025.”

Pub. L. 119–21, title VII, § 70414(c), July 4, 2025, 139 Stat. 221, provided that: “The amendments made by this section [amending this section] shall apply to distributions made after the date of the enactment of this Act [July 4, 2025].”

Amendment by Pub. L. 117–328 applicable with respect to distributions after Dec. 31, 2023, see section 126(d) of Pub. L. 117–328, set out as a note under section 408A of this title.

Amendment by Pub. L. 116–94 applicable to distributions made after Dec. 31, 2018, see section 302(c) of Pub. L. 116–94, set out as a note under section 221 of this title.

Amendment by section 101(l)(15) of Pub. L. 115–141 effective as if included in the provision of the Protecting Americans from Tax Hikes Act of 2015, div. Q of Pub. L. 114–113, to which such amendment relates, see section 101(s) of Pub. L. 115–141, set out as a note under section 24 of this title.

Pub. L. 115–97, title I, § 11025(b), Dec. 22, 2017, 131 Stat. 2076, provided that: “The amendments made by this section [amending this section] shall apply to distributions after the date of the enactment of this Act [Dec. 22, 2017].”

Pub. L. 115–97, title I, § 11032(b), Dec. 22, 2017, 131 Stat. 2082, provided that: “The amendments made by this section [amending this section] shall apply to distributions made after December 31, 2017.”

Pub. L. 114–113, div. Q, title III, § 302(a)(2), Dec. 18, 2015, 129 Stat. 3086, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 2014.”

Pub. L. 114–113, div. Q, title III, § 302(b)(2), Dec. 18, 2015, 129 Stat. 3086, provided that: “The amendment made by this subsection [amending this section] shall apply to distributions after December 31, 2014.”

Pub. L. 114–113, div. Q, title III, § 302(c)(2), Dec. 18, 2015, 129 Stat. 3087, provided that:“(A)In general.—The amendment made by this subsection [amending this section] shall apply with respect to refunds of qualified higher education expenses after December 31, 2014.“(B)Transition rule.—In the case of a refund of qualified higher education expenses received after December 31, 2014, and before the date of the enactment of this Act [Dec. 18, 2015], section 529(c)(3)(D) of the Internal Revenue Code of 1986 (as added by this subsection) shall be applied by substituting ‘not later than 60 days after the date of the enactment of this subparagraph [Dec. 18, 2015]’ for ‘not later than 60 days after the date of such refund’.”

Pub. L. 113–295, div. B, title I, § 105(b), Dec. 19, 2014, 128 Stat. 4064, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2014.”

Pub. L. 111–5, div. B, title I, § 1005(b), Feb. 17, 2009, 123 Stat. 316, provided that: “The amendments made by this section [amending this section] shall apply to expenses paid or incurred after December 31, 2008.”

Amendment by section 207(21) of Pub. L. 108–311 applicable to taxable years beginning after Dec. 31, 2004, see section 208 of Pub. L. 108–311, set out as a note under section 2 of this title.

Amendment by section 406(a) of Pub. L. 108–311 effective as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 406(h) of Pub. L. 108–311, set out as a note under section 55 of this title.

Amendment by Pub. L. 107–22 effective July 26, 2001, see section 1(c) of Pub. L. 107–22, set out as a note under section 26 of this title.

Amendment by Pub. L. 107–16 applicable to taxable years beginning after Dec. 31, 2001, see section 402(h) of Pub. L. 107–16, set out as a note under section 72 of this title.

Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

Pub. L. 105–34, title II, § 211(f), Aug. 5, 1997, 111 Stat. 812, provided that:“(1)In general.—Except as otherwise provided in this subsection, the amendments made by this section [amending this section and sections 135 and 6693 of this title] shall take effect on January 1, 1998.“(2)Expenses to include room and board.—The amendment made by subsection (a) shall take effect as if included in the amendments made by section 1806 of the Small Business Job Protection Act of 1996 [Pub. L. 104–188].“(3)Eligible educational institution.—The amendment made by subsection (b)(2) [amending this section] shall apply to distributions after December 31, 1997, with respect to expenses paid after such date (in taxable years ending after such date), for education furnished in academic periods beginning after such date.“(4)Coordination with education savings bonds.—The amendment made by subsection (c) [amending section 135 of this title] shall apply to taxable years beginning after December 31, 1997.“(5)Estate and gift tax changes.—“(A)Gift tax changes.—Paragraphs (2) and (5) of section 529(c) of the Internal Revenue Code of 1986, as amended by this section, shall apply to transfers (including designations of new beneficiaries) made after the date of the enactment of this Act [Aug. 5, 1997].“(B)Estate tax changes.—Paragraph (4) of such section 529(c) shall apply to estates of decedents dying after June 8, 1997.“(6)Transition rule for pre-august 20, 1996 contracts.—In the case of any contract issued prior to August 20, 1996, section 529(c)(3)(C) of the Internal Revenue Code of 1986 shall be applied for taxable years ending after August 20, 1996, without regard to the requirement that a distribution be transferred to a member of the family or the requirement that a change in beneficiaries may be made only to a member of the family.”

Amendment by section 1601(h)(1)(A), (B) of Pub. L. 105–34 effective as if included in the provisions of the Small Business Job Protection Act of 1996, Pub. L. 104–188, to which it relates, see section 1601(j) of Pub. L. 105–34, set out as a note under section 23 of this title.

Pub. L. 104–188, title I, § 1806(c), Aug. 20, 1996, 110 Stat. 1898, as amended by Pub. L. 105–34, title XVI, § 1601(h)(1)(C), Aug. 5, 1997, 111 Stat. 1092, provided that:“(1)In general.—The amendments made by this section [enacting this section and amending section 135 of this title] shall apply to taxable years ending after the date of the enactment of this Act [Aug. 20, 1996].“(2)Transition rule.—If—“(A) a State or agency or instrumentality thereof maintains, on the date of the enactment of this Act, a program under which persons may purchase tuition credits or certificates on behalf of, or make contributions for education expenses of, a designated beneficiary, and“(B) such program meets the requirements of a qualified State tuition program before the later of—“(i) the date which is 1 year after such date of enactment, or“(ii) the first day of the first calendar quarter after the close of the first regular session of the State legislature that begins after such date of enactment,then such program (as in effect on August 20, 1996) shall be treated as a qualified State tuition program with respect to contributions (and earnings allocable thereto) pursuant to contracts entered into under such program before the first date on which such program meets such requirements (determined without regard to this paragraph) and the provisions of such program (as so in effect) shall apply in lieu of section 529(b) of the Internal Revenue Code of 1986 with respect to such contributions and earnings.For purposes of subparagraph (B)(ii), if a State has a 2-year legislative session, each year of such session shall be deemed to be a separate regular session of the State legislature.”