Major changes to 529 plan and HSA benefits may be in the cards
New tax legislation will impact 529 plans and HSA contribution rules.
Nearly 10 million U.S. households—about 13% of the 74 million that owned mutual funds in 2024—identified education as a primary goal for their investments, according to the Investment Company Institute (ICI)
Of those, 15%, 11.1 million households, reported owning 529 plans, the tax-advantaged accounts designed to help families save for future education costs.
Related: Secretary Bessent hints Social Security income tax changes are coming
As of year-end 2024, there were 16.1 million 529 savings plan accounts nationwide, with an average account balance of approximately $31,100. Total assets in these plans reached $500.6 billion.
And while that’s a meaningful sum, it represents just a fraction of the broader mutual fund market, which totaled $38.8 trillion in U.S. assets in open-end funds at year-end 2024.
