4Q 2023 529 and ABLE Market Sizing Highlights
By Paul Curley, CFA | Paul.Curley@issgovernance.com | February 5, 2024What was the 529 and ABLE market sizing as of 4Q 2023 (December 31, 2023)?
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
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
December 2022 Quarterly 529 & ABLE Market Sizing Data
– 16.0 million accounts invested $411 billion in assets in 529 savings and prepaid plans
– 15.1 million accounts invested $388 billion in assets in 529 savings plans
– 0.9 million accounts invested $23 billion in assets in 529 prepaid plans
– 137,145 accounts invested $1.253 billion in assets in ABLE (529A) accounts
Net Flows (contributions minus withdrawals):
– Estimated 529 savings plan net inflows were $2.1 billion in 4Q 2023 compared to net inflows of $1.5 billion in 4Q 2022, 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 2023 in the United States.
Furthermore, the increase from 4Q 2022 to 4Q 2023 highlights that usage continues to increase as the fourth quarter is when parents make year-end contributions. The overall outlook for 529s continue to brighten, and especially with the expansion of qualified expenses to certain types of rollovers 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.
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 4Q 2023 Assets
Top 5 529 Savings Plan Program Managers by 4Q 2023 Assets
For questions, commentary or feedback on the data, please contact Paul Curley at paul.curley@issgovernance.com.
– 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
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
December 2022 Quarterly 529 & ABLE Market Sizing Data
– 16.0 million accounts invested $411 billion in assets in 529 savings and prepaid plans
– 15.1 million accounts invested $388 billion in assets in 529 savings plans
– 0.9 million accounts invested $23 billion in assets in 529 prepaid plans
– 137,145 accounts invested $1.253 billion in assets in ABLE (529A) accounts
Net Flows (contributions minus withdrawals):
– Estimated 529 savings plan net inflows were $2.1 billion in 4Q 2023 compared to net inflows of $1.5 billion in 4Q 2022, 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 2023 in the United States.
Furthermore, the increase from 4Q 2022 to 4Q 2023 highlights that usage continues to increase as the fourth quarter is when parents make year-end contributions. The overall outlook for 529s continue to brighten, and especially with the expansion of qualified expenses to certain types of rollovers 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.
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 4Q 2023 Assets
Top 5 529 Savings Plan Program Managers by 4Q 2023 Assets
For questions, commentary or feedback on the data, please contact Paul Curley at paul.curley@issgovernance.com.