Colleen C. Davis
State Treasurer

DE529 – Education Savings Plan

A young baby looks afraid, laying on a carpet, eyes wide and mouth open. "I'm going to have how much in student debt?" Logo for education savings plan DE 529. 529.Delaware.Gov

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About The Plan

Delaware’s 529 Plan is sponsored by the State of Delaware and managed by Fidelity Investments. The Plan provides tax-advantaged accounts designed to help parents, grandparents and others pay for higher education expenses. Contributions can be invested in portfolios tailored to a child’s age or the investor’s ability to identify an asset allocation strategy. Withdrawals can be used for qualified expenses at any accredited college nationwide and many international institutions.

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First State, First Steps Program

“First State, First Steps” is an incentive program for Delawareans offering a $100 contribution to a new DE529 Education Savings Plan account opened through September 30, 2023.

First State First Steps Logo

In addition to the account being opened during the applicable time period, in order to qualify for the $100 incentive:

The beneficiary must be five years of age or younger at the time of account opening
The beneficiary must be a Delaware resident at the time the account is opened
A minimum contribution of at least $100.00 must be made to the DE529 account when the account is opened

Additional information can be found here.

Una manera inteligente y simple de ahorrar para el futuro de sus hijos. – Fidelity Investments

Para inscribirse en el Plan de ahorros para la educación DE529, haga clic aquí.

Plan Benefits

Tax advantages
You won’t pay any taxes on your money as it grows. Plus, withdrawals for qualified higher education
expenses like tuition, fees, and books are federal and Delaware income tax-free.

NEW Beginning with contributions made in 2022, federal adjusted gross income will be reduced for any contribution up to $1,000 (or $2,000 for joint returns) with a few conditions.

The deduction will NOT apply to:

Tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school
Individuals with a federal AGI greater than $100,000 (or $200,000 for joint returns).

Deductions for couples with an AGI below $200,000 are capped at $2,000.

Flexible options for your savings
You are not limited to in-state schools. You can use the funds at almost all accredited colleges and
universities nationwide, many vocational or technical schools, and eligible foreign institutions — for
a wide range of qualified higher education expenses.

A range of investment choices
You can leave the investment decisions to Fidelity by selecting an Age-Based Strategy that invests your
savings in a Portfolio based on the beneficiary’s age. Or, if you prefer, you can select a Custom Strategy
by choosing your own Portfolio(s).

It’s easy to get started
With $50 or as little as $15 a month, you can put your Delaware College Investment Plan account
into action. Contributions can be made automatically from your bank account, from your Fidelity
Account®, or with direct deposit from your paycheck (if offered through your employer). Delaware
taxpayers can direct their tax refunds to their 529 college investment savings plan when completing
their state income tax return.