3Q 2024 529 and ABLE Market Sizing Highlights

By Paul Curley, CFA | paul.curley@issmarketintelligence.com | November 12, 2024

What was the 529 and ABLE market sizing as of 3Q 2024 (September 30, 2024)?

September 2024 Quarterly 529 & ABLE Market Sizing Data
– 16.8 million accounts invested $528 billion in assets in 529 savings and prepaid plans
– 15.9 million accounts invested $502 billion in assets in 529 savings plans
– 0.9 million accounts invested $26 billion in assets in 529 prepaid plans
– 187,210 accounts invested $2.189 billion in assets in ABLE (529A) accounts

June 2024 Quarterly 529 & ABLE Market Sizing Data
– 16.8 million accounts invested $508 billion in assets in 529 savings and prepaid plans
– 15.9 million accounts invested $484 billion in assets in 529 savings plans
– 0.9 million accounts invested $24 billion in assets in 529 prepaid plans
– 180,748 accounts invested $2.032 billion in assets in ABLE (529A) accounts

September 2023 Quarterly 529 & ABLE Market Sizing Data
– 16.3 million accounts invested $431 billion in assets in 529 savings and prepaid plans
– 15.4 million accounts invested $408 billion in assets in 529 savings plans
– 0.9 million accounts invested $23 billion in assets in 529 prepaid plans
– 158,331 accounts invested $1.551 billion in assets in ABLE (529A) accounts

Net Flows (contributions minus withdrawals):
– Estimated 529 savings plan net outflows were $6.7 billion in 3Q 2024 compared to net outflows of $6.5 billion in 3Q 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.

The overall outlook for 529s continue to brighten, and especially with the expansion of qualified expenses to certain types of qualified distributions from 529s to Roth IRAs. As 529s broaden from a product for education financial planning to retirement financial planning in 2024, we expect new positive 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 3Q 2024 Assets

Top 5 529 Savings Plan Program Managers by 3Q 2024 Assets

For questions, commentary or feedback on the data and industry trends, please contact Paul Curley at paul.curley@issmarketintelligence.com.