529 Myths

Why haven’t you started saving for education yet?

Franklin Templeton’s 529 plan offers many features like low contribution minimums, no sales charges, a wide range of investment options, innovative tools and special benefits.


Do you still believe the myths about 529 savings plans?

Myths vs Facts



My child will need to go to college in the state that sponsors the 529 plan.


Your child will not be restricted to one state! You can use a 529 plan for most schools in the United States including vocational schools and certified apprenticeships, no matter where your 529 savings plan is based.



I can only use a 529 plan if my child goes to a 4-year college or university.


529 plans can be used at most accredited two- and four-year colleges and universities and vocational schools, including many outside the U.S., as well as certified apprenticeships.

Additionally, up to $10,000 per year per beneficiary can be used for tuition for eligible public, private and religious primary and secondary educational institutions (K-12). What expenses will be regarded as “tuition” in the case of public schools may vary by state.1



Grandparents cannot open a 529 plan, only parents can.


Parents, grandparents, aunts, uncles, friends... almost anyone can be an account owner with a valid U.S. Tax ID and a permanent address. You can even open a 529 plan for yourself!



I make too much money to contribute to a 529 plan.


It does not matter how much you earn. 529 plans have no income limits.



I can only open a plan if I have children.


529 plans are for people of all ages! Are you considering changing careers or pursuing another degree? Are you planning to have children soon? You can always open an account in your name and change the beneficiary later to another person in your family.



529 plans will only cover tuition, but I have so many other education expenses which are not covered.


Savings can be used for any qualified tuition expense. Additionally, for accredited higher education schools (e.g. college, vocational schools, or certified apprenticeships ), savings can be used for additional qualified expenses including mandatory fees, supplies, books or other required equipment, and room and board, if the beneficiary is enrolled at least half-time.1



When my child turns 18, they will just take the money and use it for something else – like a new car.


You have control! The 529 account owner owns the plan’s assets and controls how and when they will be used. Unlike an UGMA/UTMA, the 529 plan beneficiary has no legal rights to the plan’s assets, even when they turn 18.

Don’t you feel better about 529 plans?
Are you ready to open one?

Open an Account

Next Steps

Get Started

Open a Franklin Templeton 529 College Savings Plan account online

Apply Now

Need More Information?

Still have questions? Check out our FAQs.


Contact Us

Want to speak with us?
We’d love to answer any questions live.
Call us at (800) DIAL BEN® / (800) 342-5236