Florida 529 Plan: What College Savers Should Know

In June 2022, Florida held about $978 million in 529 plans.^[1] 529s are investment accounts that help people save for college for themselves or for beneficiaries like children or grandchildren.

Most states allow residents to deduct their 529 plan contributions from their taxes. However, Florida doesn't have a personal income tax, so Florida residents don't get to deduct 529 plan contributions from their taxes.

Still, Florida residents can contribute up to $418,000 in total to college savings plans.^[2]

Florida 529 Plans

Florida offers two 529 plans. One is an investment account, meaning it gains and loses returns with the stock market. The other is a prepaid tuition plan. Learn more about each plan below.

Florida 529 Savings Plan

• Requires State Residency? Yes
• K-12 Expenses Eligible? Yes
• Fees: 0.02-0.74%
• Performance Notes: After fees, the Enrollment Year 2023 investment option has gained 3.2% in average annual returns since its creation. (We last updated our notes in January 2023.)

Florida 529 Prepaid Plan

• Requires State Residency? Yes
• K-12 Expenses Eligible? No
• Fees: None
• Performance Notes:
  • While Florida's 529 prepaid plan is designed to pay for college at Florida public schools, you can use funds from the plan to pay for other colleges nationwide.
  • Prepaid 529s work a little differently. You pay money for tuition now, knowing that tuition is likely to increase in the future. Florida guarantees that if tuition exceeds the growth of your prepaid account, it will cover the difference.