Your tuition benefit and Alaska 529: A formula for success

Your tuition benefit and Alaska 529: A formula for success

September 4, 2026

As a University of Alaska employee, you may have access to one of UA's most valuable benefits: a generous tuition waiver. But tuition is only one part of the total cost of earning a degree.

Housing, meals, books, supplies and technology can add up quickly. An Alaska 529 account can help you prepare for these expenses while giving your savings the opportunity to grow tax-deferred. Withdrawals are also free from federal income tax when used for qualified education expenses.

Help cover costs beyond tuition

Alaska 529 savings can be used for many qualified expenses that may not be covered by a tuition waiver, including:

• Room and board: For students enrolled at least half-time, funds can help pay for eligible on-campus housing and meal plans or qualifying off-campus living expenses.
• Computers and technology: Alaska 529 funds can be used for computers, certain related equipment, software and internet access used while attending college.
• Books and required supplies: Textbooks, lab equipment, art supplies and other materials required for enrollment or attendance may qualify.

Together, these expenses can represent a significant portion of the cost of college, even when tuition is covered.

Keep your options open

An Alaska 529 account also provides flexibility for whatever the future may bring.

If your child chooses a program or field of study that is not available through UA, Alaska 529 savings can generally be used at eligible colleges, universities, vocational schools and other qualifying institutions nationwide.

The account also remains available if your employment or access to tuition-waiver benefits changes. That means your education savings can continue supporting your family's goals wherever the next opportunity leads.

More ways to use unused savings

What if your child completes college and money remains in the account? You have several options, including changing the beneficiary to another eligible family member or saving the funds for future education.

Qualifying unused 529 funds may also be rolled into a Roth IRA for the account beneficiary without federal taxes or penalties. The lifetime rollover limit is $35,000, and annual IRA contribution limits and other requirements apply. Among those requirements, the Alaska 529 account must have been open for at least 15 years, and recently contributed funds are not eligible.

Make a great benefit even more valuable

A UA tuition waiver can significantly reduce the cost of college. Pairing it with an Alaska 529 account can help cover many of the expenses tuition does not and give your family greater flexibility for the future.

Learn how Alaska 529 can complement your UA benefits at Alaska529Plan.com.