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Alabama 529 plans
Alabama residents receive outstanding state plan benefits.
Learn about state tax benefits ↓Alabama residents receive outstanding state plan benefits.
Learn about state tax benefits ↓Featured 529 plans for Alabama residents:
State tax deduction or credit
Contributions to an Alabama 529 plan of up to $5,000 per year by an individual, and up to $10,000 per year by married taxpayers filing jointly who each make their own contributions, are deductible in computing Alabama taxable income.
Which 529 plans does Alabama offer?
Alabama offers two 529 plans, the CollegeCounts 529 Fund and the CollegeCounts 529 Fund Advisor Plan. Each Alabama 529 plan is managed by Union Bank & Trust Company, which replaced prior manager Van Kampen during 2010. Both programs feature a menu of investment options utilizing funds from well-known fund companies. Alabama’s prepaid program (PACT) was closed to new enrollments in 2010.
Click on the links below to see specific details for each Alabama 529 plan.
Direct sold 529 plans
"Do-it-yourself" type plans in which the saver enrolls and sets up the initial investment. Fortunately most 529 plans make this simple! You'll pay no sales charges beyond fund and administrative fees.
Our rating
4 / 5
Special award
Advisor sold 529 plans
Plans offered by investment professionals. You'll gain the guidance of a financial advisor, but will incur sales charges and/or fees as you invest.
Our rating
4 / 5
Special award
ABLE Plans
529 ABLE accounts let Americans with disabilities save tax-deferred for education and other expenses without impacting eligibility for public benefits.
ABLE Plan
On May 17, 2021 Alabama terminated its involvement with the Enable program and launched its own ABLE program called the Alabama ABLE Savings Plan. The plan is administered by the Alabama State Treasurer and will be the Official ABLE Plan of Alabama. The plan is established pursuant to the Alabama ABLE Act, §16-33C-1 through 25, Code of Alabama, as amended. The plan is designed to be a "qualified ABLE program" under Code Section 529A, which status permits a beneficiary of an ABLE Account established under the plan to make tax-free withdrawals to pay for qualified disability expenses under certain circumstances.
A good place to start:
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Saving For College is an unbiased, independent resource for parents and financial professionals, providing them with information and tools to understand the benefits of 529 college savings plans and how to meet the challenge of increasing college costs.
