If you’re a parent, you’ve likely considered saving for your child’s higher education expenses. That’s why we are here to provide Birmingham Mom Collective readers more information about the CollegeCounts 529 Fund!
CollegeCounts is Alabama’s state-sponsored college savings plan, designed to help families save for higher education expenses. Whether your child wants to attend college, trade school, or even pursue graduate studies, a CollegeCounts 529 account is a smart and flexible way to start saving now for their future.
Here’s the fun part—in celebration of 5/29 Day, CollegeCounts is giving away $529 to 29 lucky Alabama families! Keep reading to learn more about CollegeCounts and how you can enter for a chance to win.
How CollegeCounts Can Help Families Prepare for the Future
If you’re new to the world of college savings plans, here’s the scoop: CollegeCounts is an investment account, sponsored by the State of Alabama, specifically designed for education expenses that also offers several tax benefits.
Here are just a few reasons a CollegeCounts 529 account is a great tool for planning ahead:
- Tax Benefits: Alabama taxpayers may be eligible to deduct up to $10,000 in contributions ($5,000 for single filers) on their Alabama state income taxes¹. Plus, your contributions grow tax-deferred, and qualified withdrawals are tax-free².
- You Stay in Control: As the account owner, you retain control of the account even after your student begins college.
- Start Small, Dream Big: There’s no minimum contribution required to open an account. Whether you can contribute $25 a month or $2,500, every bit can add up over time.
- Versatile Spending: Funds from the CollegeCounts 529 account can be used at most accredited colleges, universities, trade schools, and graduate programs across the U.S., not just in Alabama. Qualified expenses include more than just tuition: books, supplies, and equipment (i.e. computers) are also included².
Contribute what you can, when you can, and feel confident that you’re building something meaningful for your child’s future educational expenses.
Enter the CollegeCounts 5/29 Day Giveaway!
In celebration of National 529 College Savings Day on May 29th, CollegeCounts is offering 29 new parents or grandparents in Alabama a chance to win a $529 contribution to a CollegeCounts account.
Eligibility Details:
- Entrant must be a legal resident of Alabama who is at least 19 years old.
- You must be a parent, grandparent or legal guardian of a baby born between 5/29/2025 and 5/29/2026.
- Registration deadline is July 15, 2026.
29 winners will be selected at random and notified by July 31, 2026. Each will receive a $529 contribution to a CollegeCounts 529 account for their child. It’s a great opportunity for new parents or grandparents to take that important first step in preparing for their loved one’s future educational expenses.
Not Eligible? You Can Still Get Started Today
If your child was born outside the eligible date range, don’t worry—you can still open a CollegeCounts account today and help set your child up for success. Any contributions made now can be the building blocks for a better tomorrow.
Visit CollegeCounts529.com to learn more, open an account, and find helpful tools to guide you through the process. You’ll also find resources on how to involve grandparents and other family members in giving the gift of education.
Parents do so much to care for their kids day in and day out. Starting a college savings plan is one more way you can invest in their future success. Let CollegeCounts help make that dream a reality—and maybe even win $529 along the way!
DISCLOSURE
The CollegeCounts 529 Fund is a qualified tuition program under Section 529 of the Internal Revenue Code that is offered by the State of Alabama, administered by the Board of Trustees of the ACES Trust Fund (the “Trust” and plan issuer), marketed as the CollegeCounts 529 Fund, and Union Bank and Trust Company serves as Program Manager. Union Bank and Trust Company is registered as a municipal advisor with the U.S. Securities and Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB). Except for any investments made by a Participant in the Bank Savings 529 Portfolio up to the limit provided by Federal Deposit Insurance Corporation (“FDIC”) insurance, neither the principal contributed to an Account, nor earnings thereon, are guaranteed or insured by the State of Alabama, the State Treasurer of Alabama, the Board, the Trust, the Program, any other state, any agency or instrumentality thereof, Union Bank and Trust Company, the FDIC, or any other entity. Investment returns are not guaranteed. Account Owners in the Plan assume all investment risk, including the potential loss of principal.
An investor should consider the investment objectives, risks, and charges and expenses associated with municipal fund securities before investing. This and other important information is contained in the fund prospectuses and the CollegeCounts 529 Fund Program Disclosure Statement (issuer’s official statement), which can be obtained by calling 866.529.2228 and at CollegeCounts529.com and should be read carefully before investing. You can lose money by investing in a portfolio. Each of the portfolios involves investment risks, which are described in the Program Disclosure Statement.
An investor should consider, before investing, whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan. Investors should consult a tax advisor.
¹Individuals who file an Alabama state income tax return are eligible to deduct for Alabama state income tax purposes up to $5,000 per tax year ($10,000 for married taxpayers filing jointly if both contribute) for total combined contributions to the Plan and other State of Alabama 529 programs. The contributions made to such qualifying plans are deductible on the tax return of the contributing taxpayer for the tax year in which the contributions are made. In the event of a Non-Qualified Withdrawal from the Plan, for Alabama state income tax purposes, an amount must be added back to the income of the contributing taxpayer in an amount of the Non- Qualified Withdrawal plus ten percent (10%) of such amount withdrawn. Such amount will be added back to the income of the contributing taxpayer in the tax year that the Non-Qualified Withdrawal was distributed. Please consult with your tax professional.
2Withdrawals used to pay for qualified higher education expenses are free from federal and Alabama state income tax. Qualified higher education expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance; certain room and board expenses incurred by students who are enrolled at least half-time; the purchase of computer or peripheral equipment, computer software, or internet access and related services, if used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution; certain expenses for special needs services needed by a special needs beneficiary; apprenticeship program expenses; payment of principal or interest on any qualified education loan of the Beneficiary or a sibling of the Beneficiary (up to an aggregate lifetime limit of $10,000 per individual); and up to $10,000 per year in K-12 Tuition Expenses. The earnings portion of a Non-Qualified withdrawal is subject to federal income tax and 10% federal penalty tax. In addition, Alabama provides in the event of a Non-Qualified withdrawal an amount that must be added back to the income of the contributing taxpayer. The amount to be added back will be the amount of the Non-Qualified withdrawal plus 10% of the amount withdrawn.
