In 2025, the Alaska 529 Plan is offering a rare opportunity—a $25,000 scholarship giveaway that you can enter with just one click. More than just a prize, this initiative aims to spread awareness about the benefits of early education savings. With rising tuition costs, this plan provides a tax-advantaged way to prepare for a child’s education without financial strain.
Overview
The Alaska 529 Plan is an investment account designed for education expenses. The funds grow tax-free, and withdrawals for qualified education costs are also tax-free. This ensures that your savings work entirely toward your child’s future.
You do not need to be an Alaska resident to open or benefit from this plan, and contributions can come from anyone—parents, grandparents, relatives, or friends.
Tax Benefits
In a regular savings or investment account, you pay taxes on interest or profits. With Alaska 529, your investment grows without yearly tax deductions, and withdrawals for qualified education remain tax-free. This double advantage can significantly grow your education fund over time.
Uses
The plan covers a wide range of education expenses:
- College and university tuition
- Professional courses and apprenticeship programs
- K–12 tuition at public, private, or religious schools
Non-Alaska residents can still benefit from the University of Alaska’s resident tuition rate, reducing costs even further.
Investment Flexibility
You can make a lump-sum deposit or set up regular contributions (monthly, quarterly, or annually). Alaska residents can invest their Permanent Fund Dividend (PFD) directly into the account.
The plan offers portfolios managed by reputable firms like T. Rowe Price, including the University of Alaska Portfolio, which allows pre-purchasing future tuition at today’s rates.
Family and Friends Contributions
Using UGift®, anyone can contribute directly to a beneficiary’s Alaska 529 account online. This makes it a meaningful gift option for birthdays or special occasions.
Roth IRA Transfer
If the account has been open for at least 15 years, unused funds can be rolled into a Roth IRA for tax-free retirement savings—ideal if the beneficiary chooses not to pursue higher education.
Dash to Save® Bonus
Open an account in 2025 with just $25, and you will receive a $250 bonus credited by February 2026. This is an easy way to start saving with a strong boost.
Estate Planning Advantages
Contributions to Alaska 529 are removed from your taxable estate, providing a smart tax strategy. In 2025, you can gift up to $19,000 per person tax-free or contribute up to $95,000 ($190,000 for married couples) in one year and spread it over five years without gift taxes.
FAFSA Benefits
Under current rules, withdrawals from a grandparent-owned 529 account no longer count as student income on FAFSA, helping preserve eligibility for financial aid.
$25,000 Scholarship
The 2025 Alaska 529 Giveaway offers a $25,000 scholarship to one lucky participant. Registration takes only a click—no long forms, no fees. The aim is to encourage families to start investing early in their children’s education while offering a life-changing prize.
Participating could mean both securing a potential scholarship and knowing how to grow an education fund for the future.
FAQs
Do I need to live in Alaska to join the 529 Plan?
No, the Alaska 529 Plan is open to all U.S. residents.
Is the $25,000 scholarship taxable?
If used for qualified education expenses, it is not taxable.
How do I enter the scholarship giveaway?
Simply click the registration link during the promotion period.
Can family members contribute to my child’s account?
Yes, using the UGift® feature, anyone can contribute online.
What happens if my child doesn’t go to college?
Funds can be transferred to another beneficiary or rolled to a Roth IRA.
