Article

Grandparents often play a meaningful role in shaping their grandchildren’s futures, and supporting education has become one of the most impactful ways they can contribute.

Many families rely on grandparents not only for guidance and encouragement but also as steady partners in planning for future learning. A 529 account offers a practical, flexible way for grandparents to help build financial stability that supports educational pathways for years to come.

A Reliable Source of Support

Grandparents frequently choose to use 529 accounts to help reduce future student loan borrowing and create a long-term foundation for their loved one’s education. Whether contributing on a regular schedule or during important milestones, a grandparent’s involvement can provide consistency that strengthens a family’s overall saving strategy.

Support Without Affecting Financial Aid

A common concern is how grandparents’ contributions could impact financial aid. Under current FAFSA rules, assets held in a grandparent‑owned 529 account are not reported by the student or parents, meaning they do not reduce eligibility for financial aid. This gives grandparents the confidence to contribute in ways that strengthen future planning without complicating aid considerations. Related: For Grandparents

Tax Advantages for Grandparents

Grandparents who own 529 accounts may also benefit personally from tax advantages. Earnings grow free from federal tax when used for qualified education expenses, and Virginia taxpayers may deduct up to $4,000 per account, per year from their state income taxes. Individuals age 70 or older may deduct the entire amount from Virginia state income taxes for contributions made to a 529 account they own, bypassing the standard $4,000 per-account annual limit and offering additional flexibility for larger gifts.*

Special 529 rules also allow a lump‑sum contribution—often referred to as superfunding—of up to five times the annual gift tax exclusion amount, spread over five years. In 2026, this allows up to $95,000 for a single taxpayer or up to $190,000 for joint taxpayers.**

These incentives make a 529 account both a generous and financially strategic way to support a child’s future.

Flexible Ways to Contribute

Some grandparents prefer opening and managing an account themselves, while others prefer contributing to an existing account. Invest529 offers gifting tools that make it easy to provide support in ways that feel natural — whether that’s steady monthly contributions or marking a birthday or holiday with an education-focused gift.

A Lasting Investment in Tomorrow

Grandparents have long helped shape the futures of the children they love. Through 529 accounts, that support becomes a lasting investment in opportunity, stability and choice — one that helps learners prepare for tomorrow by taking thoughtful steps today. Related: Saving Tips for Grandparents

*Only the account owner may claim a deduction for contributions made.
**Consult a tax advisor to understand how gift tax rules may apply to your specific situation.