1Q 2024 529 and ABLE Market Sizing Highlights
By Paul Curley, CFA | Paul.Curley@issgovernance.com | May 9, 2024What was the 529 and ABLE market sizing as of 1Q 2024 (March 31, 2024)?
March 2024 Quarterly 529 & ABLE Market Sizing Data
– 16.6 million accounts invested $496 billion in assets in 529 savings and prepaid plans
– 15.7 million accounts invested $471 billion in assets in 529 savings plans
– 0.9 million accounts invested $25 billion in assets in 529 prepaid plans
– 171,571 accounts invested $1.919 billion in assets in ABLE (529A) accounts
December 2023 Quarterly 529 & ABLE Market Sizing Data
– 16.4 million accounts invested $471 billion in assets in 529 savings and prepaid plans
– 15.5 million accounts invested $447 billion in assets in 529 savings plans
– 0.9 million accounts invested $24 billion in assets in 529 prepaid plans
– 162,969 accounts invested $1.741 billion in assets in ABLE (529A) accounts
March 2023 Quarterly 529 & ABLE Market Sizing Data
– 16.1 million accounts invested $432 billion in assets in 529 savings and prepaid plans
– 15.2 million accounts invested $408 billion in assets in 529 savings plans
– 0.9 million accounts invested $24 billion in assets in 529 prepaid plans
– 144,068 accounts invested $1.399 billion in assets in ABLE (529A) accounts
Net Flows (contributions minus withdrawals):
– Estimated 529 savings plan net inflows were $2.1 billion in 1Q 2024 compared to net inflows of $1.6 billion in 1Q 2023, which aligns with continued demand for 529s and more parents successfully using 529s for their intended purpose of qualified educational expenses to and through the market and economic volatility in 2024 in the United States.
Furthermore, the increase from 1Q 2023 to 1Q 2024 highlights a return to normal in a post-pandemic world where more families are saving more for future educational expenses. The overall outlook for 529s continue to brighten, and especially with the expansion of qualified expenses to certain types of distributions from 529s to Roth IRAs. As 529s expand from a product for education financial planning to retirement financial planning in 2024, we expect new energy by new stakeholders to drive growth over the next three to five years.
From an industry asset and account level perspective, 529 saving plans continue to expand to help even more families. Therefore, investor interest in 529 plans and saving for education in an efficient and effective manner in terms of tax, financial aid and estate planning continues to rise, and especially as part of year-end tax planning and education financial planning.
Top 10 529 Savings Plans by 1Q 2024 Assets
Top 5 529 Savings Plan Program Managers by 1Q 2024 Assets
For questions, commentary or feedback on the data and industry trends, please contact Paul Curley at paul.curley@issgovernance.com.
– 16.6 million accounts invested $496 billion in assets in 529 savings and prepaid plans
– 15.7 million accounts invested $471 billion in assets in 529 savings plans
– 0.9 million accounts invested $25 billion in assets in 529 prepaid plans
– 171,571 accounts invested $1.919 billion in assets in ABLE (529A) accounts
December 2023 Quarterly 529 & ABLE Market Sizing Data
– 16.4 million accounts invested $471 billion in assets in 529 savings and prepaid plans
– 15.5 million accounts invested $447 billion in assets in 529 savings plans
– 0.9 million accounts invested $24 billion in assets in 529 prepaid plans
– 162,969 accounts invested $1.741 billion in assets in ABLE (529A) accounts
March 2023 Quarterly 529 & ABLE Market Sizing Data
– 16.1 million accounts invested $432 billion in assets in 529 savings and prepaid plans
– 15.2 million accounts invested $408 billion in assets in 529 savings plans
– 0.9 million accounts invested $24 billion in assets in 529 prepaid plans
– 144,068 accounts invested $1.399 billion in assets in ABLE (529A) accounts
Net Flows (contributions minus withdrawals):
– Estimated 529 savings plan net inflows were $2.1 billion in 1Q 2024 compared to net inflows of $1.6 billion in 1Q 2023, which aligns with continued demand for 529s and more parents successfully using 529s for their intended purpose of qualified educational expenses to and through the market and economic volatility in 2024 in the United States.
Furthermore, the increase from 1Q 2023 to 1Q 2024 highlights a return to normal in a post-pandemic world where more families are saving more for future educational expenses. The overall outlook for 529s continue to brighten, and especially with the expansion of qualified expenses to certain types of distributions from 529s to Roth IRAs. As 529s expand from a product for education financial planning to retirement financial planning in 2024, we expect new energy by new stakeholders to drive growth over the next three to five years.
From an industry asset and account level perspective, 529 saving plans continue to expand to help even more families. Therefore, investor interest in 529 plans and saving for education in an efficient and effective manner in terms of tax, financial aid and estate planning continues to rise, and especially as part of year-end tax planning and education financial planning.
Top 10 529 Savings Plans by 1Q 2024 Assets
Top 5 529 Savings Plan Program Managers by 1Q 2024 Assets
For questions, commentary or feedback on the data and industry trends, please contact Paul Curley at paul.curley@issgovernance.com.