START College Saving

The START Saving Program was created by the State of Louisiana. Its main purpose is to help families save for future education costs in a tax-advantaged way. Parents, grandparents, and others who want to assist in funding a child’s education are encouraged to establish an education savings account through the START College Saving Program for each child (the account beneficiary) and to make regular deposits to those accounts.

If you’re interested in saving specifically for K-12 expenses, learn more about START K12.

Any earnings on a START account have the potential to grow tax deferred, and if you use the money to pay for a qualified education expense,¹ withdrawals are tax-free!

The START College Saving Program also offers an Earnings Enhancement as an incentive to save. This means the State of Louisiana will annually match a percentage of the deposits made to an account during the calendar year, depending upon the category into which the account has been classified and the federal adjusted gross income reported by the account owner for the previous year.

To open an account, simply enroll online or complete the paper application and submit it to: START Saving Program, P.O. Box 219081, Kansas City, MO 64121. The application will walk you through entering your information, the information of the person you’re saving for, how you’d like to invest your funds, and how you’d like to contribute going forward.

You can open a START College Saving Program account with as little as $1.

To encourage college savings, the state of Louisiana matches a portion of an Account Owner’s contributions by providing Earnings Enhancements to eligible Accounts. All contributions made to an Account during the calendar year will be considered for purposes of calculating the Earnings Enhancements, provided the value of the Account does not equal or exceed the Earnings Enhancement Cap (see Glossary) and such contributions have not caused the balance to exceed the Maximum Allowable Account Balance.

Earnings Enhancements are awarded annually and posted to individual accounts as of December 31 of each year.

To calculate the Earnings Enhancement, accounts are assigned to one of six categories based on the state(s) of residence of the Account Owner and the Beneficiary and the relationship between the Account Owner and the Beneficiary at the time the Account is opened. The category the Account is assigned to determines whether it is eligible to receive Earnings Enhancements and sets the percentage of contributions that will be matched by Earnings Enhancements. For more detailed information, please see the Program Description.

START does not charge commissions, sales loads, account fees, or management fees. Each portfolio has annual investment costs ranging from approximately 0.01% to 0.05%. Under current administrative rules, additional fees may apply in the future, but not before September 1, 2027. See the Program Description for more details.

To open a START account, both the account owner and beneficiary must be citizens of the United States and/or permanent residents of the United States as defined by the U.S. Citizenship and Immigration Services. Either the account owner or the beneficiary must also be a Louisiana resident at the time the account is opened. An initial deposit of $10 or more must be made within 180 days after receipt of notification the account has been approved. New account owners using the paper application should send their first deposit with their application.

After the account is established, neither the account owner nor the beneficiary is required to maintain Louisiana residency for continued participation in the program. Accounts may be opened at any time.

Anyone—friends, family, even the beneficiary themself—can contribute to a START account! Total contributions to a START College Saving Program account cannot exceed $500,000 for each beneficiary. If your beneficiary also has a START K12 account, the total balance for both accounts cannot exceed $700,000.

You can set up an Account for your child, grandchild, spouse, yourself, another relative, or even someone not related to you. Each Account can have only one Beneficiary at any time.

However, you may have multiple Accounts for different Beneficiaries and different Account Owners may have separate Accounts for the same Beneficiary.

Keep in mind, either the account owner or the beneficiary must also be a Louisiana resident at the time the account is opened.

The beneficiary must have a Social Security number or other taxpayer identification number before an account can be opened, so the identities of both the account owner and beneficiary can be verified. However, if you would like to open an account for an unborn child and the eligibility requirements are met, an account can be opened in your name as both the account owner and beneficiary. Then, once the child is born, the beneficiary ownership can be transferred to the child. If we're unable to verify your identities, the plan reserves the right to close your account or take other steps we deem reasonable. Your Social Security number is also required for tax-reporting purposes.

While both START College Saving and START K12 are tax-advantaged education savings programs, they are designed for different stages of a student’s education.

• START College Saving Program was created to help families save for eligible colleges and universities, graduate programs, trade and vocational schools, registered apprenticeships, and certain credentialing programs. This program also offers an Earnings Enhancement match of up to 14% annually.
• START K12 Program was created to help families save for eligible kindergarten through twelfth grade expenses.

The account owner maintains control over the money invested in a START account unless the account owner dies, in which case the successor owner will take over the account. The beneficiary does not have any control over the account while the account owner is alive, unless the beneficiary is the account owner or is named as the successor account owner.

START account owners can change the investment funds for their existing balance twice each calendar year. There is no limit on how often account owners can change the way new contributions are invested.

Yes. The account owner can change the beneficiary at any time. However, the new beneficiary must be a "Member of the Family"⁴ of the current beneficiary in order to prevent a non-qualified disbursement. A "Member of the Family" is defined as:

• Father or mother, or an ancestor of either
• Stepfather or stepmother, but not their ancestors
• Brother or sister of the father or mother, but not of a step-parent
• Brother, sister, stepbrother, or stepsister
• Son or daughter, or descendant of either father-in-law or mother-in-law
• Stepson or stepdaughter
• Son or daughter of a brother or sister, but not of a step-sibling
• Spouse of the designated beneficiary or any of the above individuals
• Brother-in-law, sister-in-law, son-in-law, daughter-in-law
• First cousin

Yes. You can transfer funds directly from another 529 plan to START or complete an indirect rollover. To get started, submit an Incoming Rollover Form and, if opening a new account, an Enrollment Form.

You or the other plan must provide a statement showing the contributions and earnings included in the rollover. Otherwise, START will treat the full amount as earnings for tax-reporting purposes.

Indirect rollovers must be deposited into your START account within 60 days to avoid potential federal or state taxes and penalties. Transfers between START Saving Program and START K12 accounts are permitted without penalty, but Earnings Enhancements will not transfer to a START K12 account.

Consider consulting a qualified tax professional about possible state tax consequences before initiating a rollover.

You can submit contributions by mailing a check, Electronic Funds Transfer (EFT) or automated clearing house (ACH) from a checking or savings account, or payroll deduction, if offered by your employer.

Ugift^® is a feature of the START program that allows friends and family to contribute directly into your 529 account. Instead of a toy or clothes your child could outgrow, loved ones can give the meaningful gift of money toward future education. Thousands of families across the country are already using Ugift to boost their savings.

To invite others to contribute, log in to your START program account and share your beneficiary's unique Ugift code. Gifters should go to Ugift529.com, where they can enter the code to contribute directly to the beneficiary’s account. Gifters can even create a profile at Ugift529.com and set up recurring gifts!

Tip: If you use the READYSAVE™ 529 mobile app, you can easily share your Ugift code via text with just one click.

Upromise is a free-to-join rewards program that can turn everyday purchases—like shopping online, dining out, booking travel, or buying groceries—into cash back for education. A percentage of your eligible spending will be automatically deposited into your Upromise account. Visit Upromise.com to learn more and enroll.⁵

Earnings on START accounts are tax deferred until withdrawn. If the funds are used to pay for qualified education expenses,¹ the earnings are exempt from both state and federal taxes.

Deposits to START accounts are deductible from reported Louisiana income, up to $2,400 per year, per beneficiary. Unused portions may be carried forward to subsequent tax years. Married couples filing jointly may deduct deposits to START accounts from Louisiana State Taxable Income up to a maximum of $4,800 per year, per beneficiary, and any unused portion may be carried forward to subsequent tax years. An account owner of a Category VI account may deduct twice the amount deposited per account per taxable year, up to $2,400 in donations. If the Category VI account owner does not use the full $4,800 exemption in any tax year, any unused exemption may be rolled forward to be used in future tax years.

In 2026, you may contribute up to $19,000 per beneficiary, or $38,000 for married couples who elect to split gifts, without exceeding the annual federal gift tax exclusion. These limits include other gifts made to the beneficiary during the same year.

You may also be able to contribute up to five years of annual exclusions at one time,² currently up to $95,000 for an individual or $190,000 for a married couple. START assets are generally not included in the account owner’s estate, although exceptions and additional requirements may apply.

Consult a qualified tax professional about federal and state tax consequences for your situation.

Once the beneficiary enrolls in the postsecondary institution of their choice, the account funds may be disbursed to the beneficiary, to the account owner, or to the school as directed by the account owner to pay eligible higher education expenses.

Your 529 savings can be used for much more than just tuition! Qualified expenses include tuition, fees, certain room and board costs, books, computers and course-related software, supplies, and equipment at any eligible two- or four-year college, grad school, vocational or trade school, registered apprenticeship, or even certain credentialing programs.³ Savings can also be used for Qualified Education Loan Repayments.

Yes. Repayment of principal or interest on any qualified education loan of the beneficiary or a sibling of the beneficiary, up to $10,000 lifetime, per individual, is considered a qualified higher education expense. However, if you make an education loan repayment from your account, you may not also take a federal income tax deduction for any interest included in that education loan repayment.

No. You can use the assets in your account at any eligible school in the country and abroad. That includes eligible two- and four-year colleges, graduate schools, vocational/trade schools, registered apprenticeships, or certain credentialing programs.

If a beneficiary decides not to pursue postsecondary education, or has money left over in the account, the account owner has the following options:

• Stay invested. You can leave the money in the account in case the beneficiary decides to attend school later. There is no age restriction for using the money.
• Change the beneficiary. You can change the beneficiary on your account at any time provided that the new beneficiary is an eligible “Member of the Family” of the former beneficiary. Please see the Disclosure Statement for more information on who qualifies.
• Withdraw the money for other uses. The earnings portion of a withdrawal not used for a beneficiary’s qualified higher education expenses is subject to federal and state income taxes and may be subject to a 10% federal penalty tax. For exceptions to this penalty, please see the Disclosure Statement.
• Rollover savings from your 529 plan account into a Roth IRA without incurring any federal income tax or penalty. The Roth IRA must belong to the same beneficiary, and the lifetime rollover limit is $35,000.

Additionally, any accumulated earnings that are withdrawn from your account must also be reported on the recipient’s income tax return for the year in which they are withdrawn. Contact your tax advisor to determine how to report a non-qualified withdrawal.

The impact of a START account on financial aid will depend upon the circumstances of the beneficiary’s family at the time the beneficiary enrolls in school, as well as on the policies of the governmental agencies, school, or private organizations to which the beneficiary (and/or the beneficiary’s family) applies for financial assistance. Since saving for college will increase the financial resources available to the beneficiary, it could potentially have some effect on the beneficiary’s eligibility. However, these policies vary at different institutions and can change over time. For further guidance, you should consult with the financial aid office at the institution the beneficiary has selected.

Your START Savings account is treated as an asset of the parent or other account owner in determining eligibility for federal financial aid. Beginning with the 2009-2010 school year, Dependent Student-owned and UGMA/UTMA-owned 529 accounts are no longer excluded from the Free Application for Federal Student Aid (FAFSA) but are instead to be reported as parental assets. On the FAFSA, parental assets have a relatively small impact in calculating financial aid eligibility. In determining a student’s Expected Family Contribution (EFC), parental assets are currently assessed at a maximum 5.64% rate while non-529 plan assets are assessed at a rate of 20%. In addition, qualified withdrawals from an ESA are not counted as income in calculating a student’s financial aid eligibility.

The value of a START Saving Account has no impact on eligibility for a Taylor Opportunity Program for Students (TOPS) award.

An ESA may have a limited effect on eligibility for certain state-based financial aid programs. Eligibility for the Louisiana GO Grant is based on Pell Grant eligibility. The Leveraging Educational Assistance Partnership (LEAP) award, which is available to certain students with substantial financial need, may be affected.