Oregon College Savings Plan — Complete 2025 Guide to Oregon’s 529 Plan

Planning for your child’s college future in Oregon? The Oregon College Savings Plan offers a tax-advantaged way to grow your education fund — and it’s easier to start than you think. Whether you’re a new parent, a grandparent wanting to contribute, or someone planning for your own education, Oregon’s 529 plan provides a powerful tool to build educational wealth while enjoying valuable state tax benefits.

Quick Snapshot: The Oregon College Savings Plan (now known as Embark) is a state-sponsored 529 savings program that lets families grow education funds tax-free and enjoy Oregon state tax benefits. You can use it for tuition, housing, books, apprenticeships, and other qualified expenses at eligible institutions nationwide. With over $3.3 billion in assets under management and serving 143,000 families, Oregon’s plan has earned national “High Honors” recognition and maintains competitive fees starting at just 0.20%.​

In this comprehensive guide, we’ll explore how the plan works, tax benefits you can claim, investment options available, account management, and everything you need to make informed decisions about saving for education in Oregon.

What Is the Oregon College Savings Plan?

The Oregon College Savings Plan, recently rebranded as Embark, is Oregon’s state-sponsored 529 college savings program authorized under Section 529 of the Internal Revenue Code. Originally launched in 2001, the plan underwent significant improvements in 2018 when it transitioned to Vestwell State Savings (formerly Sumday Administration) as its program manager, resulting in reduced fees and enhanced investment options.​

Who Manages the Plan?

The Oregon 529 Savings Board, chaired by Oregon State Treasurer Elizabeth Steiner, oversees the program through Upward Oregon, a division of Oregon State Treasury. Vestwell State Savings serves as the program administrator, providing recordkeeping and platform services.​

Eligibility

The Oregon College Savings Plan is open to all United States residents, not just Oregon residents. Anyone can open an account and name anyone as a beneficiary — whether it’s your child, grandchild, other relative, friend, or even yourself. No residency requirement restricts participation, though Oregon residents receive additional state tax benefits.​

The Rebrand to Embark

In October 2025, the Oregon College Savings Plan unveiled its new name: Embark. This rebrand reflects the program’s commitment to supporting diverse educational paths beyond traditional four-year colleges, including trade schools, apprenticeships, certificate programs, and other post-secondary education options. The core mission and benefits remain unchanged — only the name evolved to be more inclusive.​

How the Oregon College Savings Plan Works

The Oregon College Savings Plan operates like other 529 savings plans, but with Oregon-specific advantages that make it particularly attractive for state residents.

Contribution Process

Opening and funding an account is straightforward:​

• Minimum contributions: Just $25 to open an account and $5 for subsequent contributions​
• Payroll deductions: As low as $5 per pay period when using automatic payroll deductions​
• Maximum contributions: You can contribute until your account balance reaches $400,000 per beneficiary​
• No annual limits: Unlike retirement accounts, 529 plans have no annual contribution restrictions at the federal level (subject to gift tax rules)​

Investment Options

Embark offers professionally managed investment portfolios designed to balance growth potential with risk management:​

1. Enrollment Year Portfolios (Age-Based): These “set it and forget it” options automatically adjust from aggressive to conservative investments as your beneficiary approaches college age. Oregon offers portfolios for enrollment years 2020 through 2043.​
2. Static Portfolios: Maintain consistent asset allocation regardless of beneficiary age, available in aggressive, moderate, and conservative options.​
3. Individual Investment Options: Including equity index funds, bond funds, a Social Choice Balanced fund, and an FDIC-Insured Option.​

The plan features investment options from respected fund families including Vanguard, with total annual fees ranging from 0.20% to 0.65%. The state administrative fee of 0.20% is among the lowest in the nation after a 2022 reduction from 0.25%.​

Tax-Free Growth and Withdrawals

Contributions grow tax-deferred, meaning you pay no federal or state income taxes on investment earnings while the money remains in the account. When you withdraw funds for qualified education expenses, the distributions are completely tax-free at both federal and state levels.​

Example: How $200/Month Can Grow Over 10 Years

To illustrate the power of consistent contributions combined with tax-advantaged compound growth, let’s examine a realistic scenario:

If you contribute $200 monthly to an Oregon 529 plan for 10 years, your results could look like this:

Conservative Scenario (5% annual return):

• Total contributions: $24,000
• Investment earnings: $7,056
• Future value: $31,056

Moderate Scenario (6% annual return):

• Total contributions: $24,000
• Investment earnings: $8,776
• Future value: $32,776

Aggressive Scenario (7% annual return):

• Total contributions: $24,000
• Investment earnings: $10,617
• Future value: $34,617

These projections demonstrate that disciplined monthly savings, even modest amounts, can generate significant wealth through compound growth. The tax-free nature of these earnings means every dollar of growth stays in your account to fund education expenses.​

Oregon College Savings Plan Tax Benefits

Oregon offers one of the most progressive tax incentive structures in the nation for 529 plan contributions — a refundable tax credit rather than a deduction.​

Oregon State Tax Credit Explained

Unlike many states that offer deductions, Oregon provides a tax credit that directly reduces your tax bill dollar-for-dollar. For tax year 2025:​

• Single filers: Up to $180 maximum tax credit​
• Joint filers: Up to $360 maximum tax credit​

The credit is refundable, meaning even if you owe no Oregon state income tax, you can still receive the credit as a refund.​

How the Tax Credit Works

The Oregon tax credit is income-adjusted, providing greater benefits to lower-income families. The percentage of your contribution eligible for the credit varies by income level:​

• For families earning $100,000 or more, the credit rate is 25% of contributions​
• Lower-income families receive higher credit percentages (up to 50% for those earning $93,610 or less)​
• To maximize the $360 joint credit, a family earning $100,000 needs to contribute only $1,440​

Comparison with Other State Benefits

Oregon’s refundable credit structure is particularly valuable:​

• Before 2020: Oregon offered a deduction of up to $4,865 for joint filers at a 10% tax rate, yielding approximately $487 in tax savings​
• After 2020: The credit system provides $300-$360 for joint filers, which may be less beneficial for high-income earners but more accessible for moderate and lower-income families​
• Carryforward provision: Oregon allows a 4-year carryforward for unused tax benefits​

How to Claim the Tax Benefits

To claim your Oregon 529 tax credit:​

1. Make contributions to your Oregon College Savings Plan account during the tax year
2. When filing your Oregon state tax return, complete Schedule OR-529
3. Enter your account information and contribution amount
4. The credit will be calculated based on your income level and contribution
5. No additional documentation is typically required beyond your 529 account statement

Oregon Income Limits and Tax Brackets

Unlike many state tax benefits, Oregon’s credit has no strict income cutoff. However, the credit rate (percentage of contributions eligible for the credit) decreases as income increases, making it most valuable for families with moderate incomes.​

Oregon College Savings Plan Login & Account Management

Managing your Embark account is straightforward through the online portal at embarksavings.com.​

How to Access the Oregon College Savings Plan Login Portal

The Oregon College Savings Plan underwent significant login system updates in 2024 as part of the Vestwell platform integration:​

1. Visit embarksavings.com (formerly oregoncollegesavings.com)​
2. Click on the login button
3. Enter your email address and password
4. Complete multi-factor authentication (required for security)​

Important Login Notes:

• If you previously had accounts with other Vestwell-administered programs (Oregon ABLE Savings Plan, OregonSaves), you’ll now see all accounts in a unified dashboard​
• Multi-factor authentication via authenticator app or phone number is mandatory​
• Some users have reported connectivity issues with budget tracking apps like Monarch Money due to the authentication requirements​

Managing Contributions, Beneficiaries, and Investment Portfolios

Once logged in, you can:​

• Set up recurring contributions via bank transfer or payroll deduction
• Change investment allocations (up to twice per calendar year)​
• Add or modify beneficiaries
• View account performance and statements
• Set up gift contribution pages for family and friends​
• Download tax forms and account documents

Overview of Sumday and the System Transition

The transition to Vestwell (formerly Sumday Administration) in 2018 brought both improvements and challenges:​

Positive Changes:

• Reduced administrative fees from 0.25% to 0.20%​
• Enhanced online platform features​
• Better investment options and lower underlying fund fees​

Transition Challenges:

• Initial account access difficulties reported in 2018-2019​
• Historical statement data temporarily unavailable during migration​
• Some users experienced delays in obtaining account information​

By 2022, most transition issues were resolved, and the plan earned Morningstar’s Silver rating and recognition as a best-in-class 529 plan.​

Investment Options and Performance

Embark offers a comprehensive range of investment options designed to meet various risk tolerances and time horizons.​

Age-Based vs. Custom Investment Portfolios

Enrollment Year Portfolios (Age-Based)

These target-date portfolios automatically rebalance from equity-heavy allocations to more conservative investments as the beneficiary approaches enrollment:​

• Available for enrollment years 2020-2043
• Start with 76-80% equity allocation for distant enrollment years​
• Gradually shift to 0-10% equity as enrollment approaches​
• Expense ratios range from 0.23% to 0.27%​

Static Risk-Based Portfolios

For investors who prefer consistent allocation:​

• Aggressive Growth, Moderate Growth, Conservative Income
• Fixed asset allocation regardless of beneficiary age
• Expense ratios from 0.075% for passive options to 0.354% for actively managed versions​

Individual Fund Options

Including:​

• US equity index funds
• International equity funds
• Bond and fixed income options
• Social Choice Balanced Fund (ESG-focused)
• FDIC-Insured Option (0.02% expense ratio)

Recent 2024-2025 Performance Summary

Oregon’s Embark plan has delivered competitive performance:​

• The plan earned “High Honors” designation from Saving For College in 2025​
• Morningstar awarded the plan a Silver rating in 2022​
• One-year returns for enrollment portfolios ranged from 3.37% (2024 portfolio) to 14.58% (aggressive portfolios)​
• The plan’s target enrollment investment series was specifically praised for its well-researched asset allocation approach​

Risk Levels and Historical Returns

Performance varies by portfolio type:​

• Conservative portfolios (near enrollment): 3-7% annual returns
• Moderate portfolios (mid-range): 8-12% annual returns
• Aggressive portfolios (distant enrollment): 12-15% annual returns

Past performance doesn’t guarantee future results, but Oregon’s plan has consistently performed within industry benchmarks while maintaining low fees.​

Who Should Open an Oregon 529 Plan?

The Oregon College Savings Plan is particularly well-suited for several groups:

Oregon Residents with Children or Grandchildren

The refundable state tax credit makes this plan especially attractive for Oregon residents. Even families with modest incomes can benefit from up to $360 annually in tax credits, which compounds to $6,480 over an 18-year savings journey.​

Out-of-State Families Seeking Low Fees

While non-Oregon residents don’t receive the state tax credit, the plan’s competitive 0.20% administrative fee and access to low-cost Vanguard funds make it a solid choice nationally. The plan is open to all U.S. residents regardless of where they live.​

Grandparents Using Gifting Contributions

Grandparents can contribute to grandchildren’s Oregon 529 plans with favorable gift tax treatment:​

• Up to $19,000 per grandchild annually (2025 limit) without triggering gift tax reporting​
• Option to “superfund” with five years of contributions ($95,000 per grandparent, $190,000 per couple) in a single year​
• Contributions reduce the grandparent’s taxable estate while benefiting grandchildren​
• Grandparents can contribute to parent-owned accounts or establish grandparent-owned accounts​

Self-Directed Learners

Adults saving for their own education, career advancement, or professional certifications can name themselves as beneficiaries and still receive Oregon’s tax benefits.​

How to Open an Oregon College Savings Plan Account

Opening an Embark account is quick and can be completed in about 15 minutes with just $25.​

Step-by-Step Instructions:

Step 1: Visit the Official Website
Navigate to embarksavings.com (the new name for oregoncollegesavings.com).​

Step 2: Create an Account and Verify Identity

• Click “Open an Account” or “Get Started”
• Provide personal information for the account owner:
  • Full name, date of birth
  • Social Security number
  • Address and contact information
• Provide beneficiary information:
  • Full name, date of birth
  • Social Security number
  • Relationship to account owner
• Create login credentials and set up multi-factor authentication​

Step 3: Choose Investment Options
Select from:​

• An enrollment year portfolio that matches your beneficiary’s expected college start date (easiest option)
• A risk-based static portfolio aligned with your risk tolerance
• Individual funds if you prefer a customized approach

You can change your investment selection up to twice per calendar year.​

Step 4: Set Recurring Contributions or Payroll Deposits
Establish automated savings to build your balance consistently:​

• Automatic monthly contributions: Link your bank account for scheduled transfers
• Payroll deduction: Set up direct deposit from your paycheck (minimum $5 per pay period)​
• One-time contributions: Add funds whenever you want (minimum $5)​
• Gift contributions: Share your customized gifting page with family and friends​

Optional Features:

• Enroll in Oregon’s Baby Grad program if your beneficiary is under 12 months old (when available)​
• Link your BottleDrop account to turn bottle and can returns into college savings​
• Set up gift contribution pages for birthdays and holidays​

Oregon College Savings Plan Rollovers and Transfers

Understanding rollover rules is essential for maximizing flexibility and avoiding tax penalties.

How to Roll Over an Oregon 529 to/from Other States

You can transfer funds between 529 plans while maintaining tax-advantaged status, subject to specific rules:​

IRS Rules for Qualified Rollovers:

• One tax-free rollover per beneficiary every 12 months​
• Funds must be moved within 60 days if taking a distribution​
• Direct rollovers (plan-to-plan transfers) are simpler and safer​

Oregon-Specific Rollover Benefits:
Oregon is one of 18 states that offers tax benefits for inbound rollover contributions. You may be eligible to claim the Oregon tax credit on the principal portion of funds rolled into an Oregon plan from another state’s 529 plan.​

Important Considerations:

• Some states impose penalties or recapture tax benefits on outbound rollovers​
• Oregon follows federal tax-free rollover treatment and does not penalize outbound rollovers​
• Rolling funds from Oregon to another state generally doesn’t trigger Oregon recapture​

529 to Oregon ABLE Account Rollovers

Oregon allows 529 plan funds to be rolled over to an Oregon ABLE Savings Plan account for beneficiaries with disabilities:​

• Annual rollover limit (less amounts already contributed to ABLE): $19,000​
• The beneficiary of the ABLE account must be the same as the 529 beneficiary or an eligible family member​
• Direct and indirect rollover options are available​
• No federal or state tax penalties apply​

529 to Roth IRA Rollovers (New for 2024)

Under the SECURE 2.0 Act, beneficiaries can now roll over unused 529 funds to a Roth IRA tax-free, subject to strict requirements:​

Requirements:

• The 529 account must have been open for at least 15 years​
• Rollovers limited to $35,000 lifetime maximum per beneficiary​
• Annual rollover amount cannot exceed Roth IRA contribution limit ($7,000 in 2025)​
• Contributions and earnings from the last 5 years are not eligible​
• Beneficiary must have earned income equal to or greater than the rollover amount​

Oregon State Tax Treatment:
Oregon follows federal tax treatment for 529-to-Roth IRA rollovers. This means Oregon residents will not face state income tax or recapture of previous tax credits when making these rollovers.​

Alternatives to the Oregon College Savings Plan

While Oregon’s plan offers strong benefits, exploring alternatives helps ensure you choose the best option for your family.

Other Top 529 Plans

Several out-of-state plans are consistently ranked among the nation’s best:​

Utah my529

• Extremely low fees (0.01% to 0.14% expense ratios)​
• Broad investment options including small-cap value funds​
• No minimum to open​
• 4.55% state tax credit for Utah residents on up to $2,490/$4,980 contributions​

Nevada (Vanguard 529)

• Direct access to Vanguard funds​
• Low fees and strong historical performance​
• No state income tax means no state tax benefit​

New York’s 529 College Savings Program

• Vanguard investment options​
• Up to $10,000 annual state tax deduction for New York residents​
• Minimum $3,000 initial investment​

Comparison Considerations:

• Oregon residents should compare the value of Oregon’s $360 tax credit against potentially lower fees in other states​
• Non-Oregon residents may find better fee structures elsewhere but should evaluate total costs​

Coverdell Education Savings Account (ESA) Comparison

Coverdell ESAs offer different advantages and limitations compared to 529 plans:​

Coverdell ESA Advantages:

• Self-directed investment control (can choose any investments)​
• Covers broader K-12 expenses beyond just tuition​
• No state-specific restrictions

Coverdell ESA Disadvantages:

• Maximum $2,000 annual contribution per beneficiary​
• Income limits: $110,000 (single)/$220,000 (married)​
• Beneficiary must be under 18 to receive contributions​
• Funds must be used by age 30​

When to Consider Coverdell ESA:

• You want complete investment control
• You’re saving for K-12 expenses beyond tuition
• Your annual contributions will be under $2,000​

Prepaid Tuition Plans

Oregon does not currently offer a prepaid tuition plan. Only nine states maintain these programs: Florida, Massachusetts, Michigan, Mississippi, Nevada, Pennsylvania, Texas, Virginia, and Washington.​

Prepaid plans allow families to lock in current tuition rates for future use but typically:

• Restrict usage to in-state public institutions (with penalties for out-of-state use)​
• Don’t cover room, board, or other expenses beyond tuition​
• May carry financial risks if the state program becomes underfunded​

For most Oregon families, the Embark 529 savings plan offers superior flexibility and broader application.​

FAQs — Oregon College Savings Plan

Can grandparents contribute to the Oregon 529 plan?

Absolutely. Grandparents can contribute to grandchildren’s Oregon 529 plans in several ways:​

• Contribute directly to parent-owned accounts​
• Open grandparent-owned accounts​
• Give up to $19,000 per grandchild per year without gift tax consequences​
• Superfund with $95,000 per grandparent ($190,000 per couple) using 5-year gift tax averaging​

Grandparent contributions are particularly valuable for estate planning while supporting educational goals.​

Did the Oregon College Savings Plan rollover to Sumday?

The Oregon College Savings Plan transitioned to Sumday Administration (now Vestwell State Savings) as its program manager in 2018. This was an administrative change affecting the platform and recordkeeping services, not a rollover of individual accounts. Account balances and ownership remained intact, though account holders experienced a learning curve with the new online system.​

What expenses qualify under the Oregon 529 plan?

Oregon 529 funds can be used tax-free for a wide range of qualified education expenses:​

Higher Education:

• Tuition and mandatory fees​
• Room and board (for students enrolled at least half-time)​
• Books, supplies, and required equipment​
• Computers, software, and internet access (if primarily used for education)​

K-12 Education:

• Tuition only (up to $10,000 per year per beneficiary)​

Apprenticeships and Credentials:

• Registered apprenticeship program fees, books, supplies, equipment​
• Postsecondary credentialing and certification programs (starting July 2025)​

Student Loan Repayment:

• Up to $10,000 lifetime per borrower for qualified education loans​

What is NOT covered:

• Transportation and car insurance​
• Sports equipment and gaming consoles​
• Travel costs (except for study abroad programs)​
• Smartphones not required for coursework​

Oregon follows the federal definition of qualified expenses, which means distributions for all federally qualified expenses are state tax-free.​

Expert Financial Tips

Maximizing your Oregon 529 plan benefits requires strategic planning and consistent execution.

Start Early — The Power of Compounding

Time is your greatest ally when saving for education. Starting when your child is born versus waiting until age 8 can result in tens of thousands of dollars in additional growth due to compound interest. Even modest contributions grow significantly over 18 years when invested in tax-advantaged accounts.​

Use Auto-Deposits to Stay Consistent

Behavioral finance research shows that automating savings dramatically increases success rates. Set up:​

• Automatic monthly bank transfers​
• Payroll deductions (as low as $5 per paycheck)​
• Contribution escalation to increase savings as your income grows

Consistency matters more than contribution size when starting early.​

Diversify Investments Within the 529

While you can’t change investments frequently (limited to twice per calendar year), thoughtful portfolio selection matters:​

• Younger children: Consider more aggressive, equity-heavy portfolios​
• Approaching college: Shift to conservative, bond-heavy portfolios to protect principal​
• Age-based portfolios handle this automatically​
• Review performance annually even if you’re in an age-based option​

Monitor Performance Annually

Schedule an annual review to:​

• Verify your account is on track toward your savings goal
• Adjust contribution amounts based on changed circumstances
• Evaluate whether your investment allocation still aligns with your timeline
• Consider taking advantage of Oregon’s $360 annual tax credit​

Coordinate with Other Savings Vehicles

Don’t put all your education savings in a 529:​

• Consider splitting contributions between 529 plans and Roth IRAs (which can be used for education or retirement)​
• Maximize the Oregon tax credit first ($360 for joint filers), then consider other savings options​
• Maintain an emergency fund before maximizing 529 contributions
• Balance education savings with retirement planning — you can borrow for college but not for retirement

Leverage Family Contributions

Maximize the collective impact of family support:​

• Create a gift contribution page through your Embark account​
• Share it with grandparents and relatives for birthdays and holidays
• Encourage grandparents to contribute directly rather than buying toys (which accumulate and lose value)​
• Educate family members about the long-term impact of contributions​

Conclusion

The Oregon College Savings Plan — now reimagined as Embark — empowers Oregon families to take control of their educational future through tax-advantaged savings. With low fees, competitive investment performance, flexible usage for diverse educational paths, and Oregon’s valuable refundable tax credit, the plan provides a comprehensive solution for building long-term educational wealth.

Whether you’re a parent starting to save for a newborn, a grandparent wanting to contribute to your grandchildren’s future, or an adult planning for your own educational advancement, Embark offers accessible entry points (just $25 to start), professional investment management, and the security of state oversight through Oregon State Treasury.​

The plan’s recent recognition with “High Honors” from Saving For College and its track record of serving 143,000 families with $3.3 billion in assets demonstrate its reliability and effectiveness. Combined with expanded federal benefits like 529-to-Roth IRA rollovers and coverage of apprenticeships and credentials, today’s 529 plans offer unprecedented flexibility.​

Starting early, contributing consistently, and taking advantage of Oregon’s $360 annual tax credit can position your family for educational success while reducing the burden of student debt. The difference between graduating debt-free versus carrying tens of thousands in loans can fundamentally change a young person’s financial trajectory for decades.

Take Action Today

Ready to get started? Visit embarksavings.com to open your account in just 15 minutes with $25 or call 1-866-772-8464 to speak with a representative.​

👉 Strengthen Your Complete Financial Strategy

Before investing heavily in education savings, ensure your financial foundation is solid. Use the free Emergency Fund Calculator to calculate your recommended emergency savings target and strengthen your overall financial security strategy. A proper emergency fund prevents you from raiding education savings during financial emergencies, keeping your college savings plan on track.