Florida Prepaid’s 529 Savings Plan Accounts Top $1 Billion

Families that open a Florida 529 Savings Plan account now through August 15 will get $50 added to their account.

  • There are now more than 100,000 active Florida 529 Savings Plan accounts with a combined $1 billion in savings – mirroring a national trend of families choosing 529 Plans as their education savings vehicle. 
  • Rising popularity comes on the heels of multiple Plan enhancements aimed at helping Florida families get the most from their investments.
  • The Florida 529 Savings Plan is a Morningstar medal-winning plan and is regarded as one of the nation’s top-performing 529 plans by Savingforcollege.com.

TALLAHASSEE, Fla. For the first time since the Florida Prepaid College Board was founded over 30 years ago, there are now more than 100,000 active Florida 529 Savings Plans with a combined $1 billion in savings.  

The rising popularity of the Florida 529 Savings Plan comes amid recent enhancements aimed at helping Florida families maximize their investments, and it mirrors a national trend of families choosing 529 Savings Plans as a flexible vehicle for education savings.

The Florida 529 Savings Plan, now designed exclusively for Florida residents, has received several enhancements since 2019, including new investment options and a 70 percent reduction in fees, which ensures more of families’ savings go directly toward their college savings goals. The redesigned website highlights available investment options and allows families to choose an investment strategy that best fits their needs. Morningstar has called the Plan among the two most improved in the nation, with a Bronze medal rating, and the Plan is now regarded as one of the nation’s top-performing 529 college plans by savingforcollege.com.

This summer, the Florida Prepaid College Board is encouraging families to take advantage of these enhancements and start saving for college with a Florida 529 Savings Plan. As an added incentive, new accounts opened between July 1 and August 15, 2021, will have $50 added to their new account. 

 “The Florida 529 Savings Plan offers an affordable, flexible way for Floridians to save,” said Board Chairman John D. Rood. “By contributing to these new Florida 529 Savings Plans, we are sending a message to Florida families that we support you as you save toward your child’s college dreams.”

A monthly contribution of just $25 into the Florida 529 Savings Plan could grow to nearly $9,000 over the next 18 years, according to the Florida Prepaid savings calculator.  That could help future college students be prepared for their first year of college tuition and fees.

The Florida 529 Savings Plan is an investment plan that can be used nationwide for qualified education expenses, including tuition, fees, room, board, books and supplies. Investment earnings are tax-free as long as they are used for those expenses. With a 529 Savings Plan, the account owner maintains control and chooses when and how to invest. 

According to the latest data available from the College Savings Plans Network, an umbrella group monitoring the country’s 529 plans, these tax-advantaged education-savings accounts nationally accumulated $352.4 billion in assets by mid-2019, up 7% from the prior year. There were 14 million 529 accounts as of June, up from 13.8 million accounts by the end of 2018. For the Florida 529 Savings Plan, new account openings are currently up 60 percent year over year.

“If you are new to 529 college savings plans, check out the significant benefits the Florida 529 Savings Plan has to offer,” said Kevin Thompson, Executive Director of the Florida Prepaid College Board. “And if you are already using a 529 savings and investment plan, but it is not with Florida, you could be paying too much in fees.  I would encourage you to evaluate and compare the Florida 529 Savings Plan today to ensure you are getting the most out of your college savings.”