Tax-free withdrawals from 529s are now permanent, they don't hurt chances for financial aid and the offerings are better than ever. In other words, you'd be a fool to save for college any other way but in a 529 plan.
The real question is which plan to pick. There are some 85 plans available nationwide – the 70 largest are listed below - with almost every state offering at least one program and some, like West Virginia, offering as many as five.
All 529 savings plans provide the same federal tax benefits: Your investment earnings grow free of income tax. Your withdrawals, as long as you use them to pay higher education bills, are untaxed as well.
What you don't get is an up-front federal tax deduction.
But 32 states and the District of Columbia have stepped in where the feds have not, offering residents a write-off on state income taxes for at least a portion of their 529 contributions.
And three states - Kansas, Maine and Pennsylvania - even allow residents to deduct their contributions to out-of-state plans as well.
If you live in a high-tax state that offers a big deduction for 529 contributions, your best 529 plan is one in your own backyard - that is, as long as the plan also has reasonable expenses and offers solid investment choices. We selected 22 plans as top choices on this basis, in addition to another 5 whose strong management and low fees make them top choices not only for their own state's citizens, but for anyone whose in-state plan doesn't merit a star.
Alabama |
Higher Education 529 Fund |
Van Kampen / Van Kampen mutual funds |
www.alabama529.com |
Alaska |
John Hancock Freedom 529 |
T. Rowe Price and John Hancock / Multiple funds families |
www.johnhancockfreedom529.com |
Alaska |
T. Rowe Price College Savings Plan |
T. Rowe Price / T. Rowe Price mutual funds |
price529.com |
Arizona |
Fidelity Arizona College Savings Plan |
Fidelity Investments / Fidelity Investments mutual funds |
www.fidelity.com/arizona |
Arizona |
Waddell & Reed InvestEd Plan |
Waddell & Reed / Waddell and Reed mutual funds |
www.waddell.com |
Arkansas |
GIFT College Investing Plan |
Upromise and Vanguard / Vanguard mutual funds |
www.thegiftplan.com |
California |
The ScholarShare College Savings Plan |
Fidelity Investments / Fidelity Investments mutual funds |
www.scholarshare.com |
Colorado |
Direct Portfolio College Savings Plan |
Upromise and Vanguard / Vanguard mutual funds |
www.collegeinvest.org |
Colorado |
Scholars Choice College Savings Program |
Legg Mason / Multiple funds |
www.scholars-choice.com |
Connecticut |
Connecticut Higher Education Trust (CHET) |
TIAA-CREF / TIAA-CREF mutual funds |
www.aboutchet.com |
Delaware |
Delaware College Investment Plan |
Fidelity Investments / Fidelity Investments mutual funds |
www.fidelity.com/delaware |
District of Columbia |
DC 529 College Savings Program |
Calvert / Multiple funds families |
www.dccollegesavings.com |
Florida |
Florida College Investment Plan |
Florida Prepaid College Board / Multiple fund families |
www.florida529plans.com |
Georgia |
Georgia Higher Education Savings Plan |
TIAA-CREF / TIAA-CREF mutual funds |
www.gacollegesavings.com |
Hawaii |
TuitionEDGE |
Delware Investments / Delware Investments |
www.tuitionedge.com |
Idaho |
Idaho College Savings Program (IDeal) |
TIAA-CREF / TIAA-CREF mutual funds |
www.idsaves.org |
Illinois |
Bright Directions College Savings Program |
Union Bank and Trust Company / Multiple fund families |
www.brightdirections.com |
Illinois |
Bright Start College Savings Program |
Legg Mason / Multiple fund families |
www.brightstartsavings.com |
Indiana |
CollegeChoice 529 Investment Plan (Advisor) |
JPMorgan / Multiple fund famliles |
www.collegechoiceplan.com |
Indiana |
CollegeChoice 529 Investment Plan (Direct) |
JPMorgan / Multiple fund families |
www.collegechoiceplan.com |
Iowa |
College Savings Iowa |
Upromise Investments and Vanguard / Vanguard mutual funds |
www.collegesavingsiowa.com |
Kansas |
Learning Quest 529 Education Savings Program |
American Century / Multiple fund families |
www.learningquest.com |
Kansas |
Schwab 529 College Savings Plan |
American Century / Multiple fund families |
www.schwab.com/529 |
Kentucky |
Kentucky Education Savings Plan Trust |
TIAA-CREF / TIAA-CREF mutual funds |
www.kysaves.com |
Louisiana |
START Saving Program |
Louisiana State Treasurer / Multiple fund families |
www.startsaving.la.gov |
Maine |
NextGen College Investing Plan - Client Direct Series |
Merrill Lynch / Multiple fund families |
www.nextgenplan.com |
Maine |
NextGen College Investing Plan - Client Select Series |
Merrill Lynch / Multiple funds |
www.nextgenplan.com |
Maryland |
College Savings Plans of Maryland - College Investment Plan |
T. Rowe Price / T. Rowe Price mutual funds |
www.collegesavingsmd.org |
Massachusetts |
U.Fund College Investing Plan |
Fidelity Investments / Fidelity Investments mutual funds |
www.fidelity.com/ufund |
Michigan |
Michigan Education Savings Program |
TIAA-CREF / TIAA-CREF mutual funds |
www.misaves.com |
Minnesota |
Minnesota College Savings Plan |
TIAA-CREF / TIAA-CREF mutual funds |
www.mnsaves.org |
Mississippi |
Mississippi Affordable College Savings (MACS) Program |
TIAA-CREF / TIAA-CREF mutual funds |
www.collegesavingsms.com |
Missouri |
MOST - Missouri's 529 College Savings Plan |
Upromise Investments / Multiple fund families |
www.missourimost.org |
Montana |
Pacific Life Funds 529 College Savings Plan |
Pacific Life / Pacific Life funds |
www.pacificlife.com |
Nebraska |
AIM College Savings Plan |
AIM / AIM mutual funds |
www.aiminvestments.com |
Nebraska |
College Savings Plan of Nebraska |
Union Bank and Trust Company / Multiple fund multiple fund families |
www.planforcollegenow.com |
Nevada |
Columbia 529 Plan |
Upromise Investments / Multiple fund families |
www.columbia529.com |
Nevada |
The Vanguard 529 Savings Plan |
Upromise Investments and Vanguard / Vanguard mutual funds |
www.vanguard.com |
New Hampshire |
Fidelity Advisor 529 Plan |
Fidelity Investments / Fidelity Advisor Funds |
www.advisor.fidelity.com/529 |
New Hampshire |
UNIQUE College Investing Plan |
Fidelity Investments / Fidelity Investments mutual funds |
www.fidelity.com/unique |
New Jersey |
Franklin Templeton 529 College Savings Plan |
Franklin Templeton / Multiple fund families |
www.franklintempleton.com |
New Jersey |
NJBEST 529 College Savings Plan |
Franklin Templeton / Multiple fund families |
www.njbest.com |
New Mexico |
Scholar'sEdge |
OppenheimerFunds / OppenheimerFunds mutual funds |
www.scholarsedge529.com |
New Mexico |
The Education Plan’s College Savings Program |
OppenheimerFunds / Multiple fund families |
www.theeducationplan.com |
New York |
New York's 529 College Savings Program - Advisor Plan |
Upromise Investments and Columbia Management / Multiple fund families |
www.ny529advisor.com/ |
New York |
New York's 529 College Savings Program - Direct Plan |
Upromise and Vanguard / Vanguard mutual funds |
www.nysaves.org/ |
North Carolina |
National College Savings Program |
College Foundation, Inc. / Multiple fund families |
www.nc529.org/ |
North Dakota |
College SAVE |
Upromise Investments / Vanguard mutual funds |
www.collegesave4u.com/ |
Ohio |
CollegeAdvantage 529 Savings Plan |
Ohio Tuition Trust Authority / Multiple fund families |
www.collegeadvantage.com |
Ohio |
Putnam CollegeAdvantage |
Putnam Investments / Putnam mutual fund families |
www.putnam.com |
Oklahoma |
Oklahoma 529 College Savings Plan |
TIAA-CREF / TIAA-CREF mutual funds |
www.ok4saving.org |
Oregon |
Oregon College Savings Plan |
OppenheimerFunds / OppenheimerFunds and Vanguard mutual funds |
www.oregoncollegesavings.com |
Pennsylvania |
Pennsylvania 529 Direct Investment Plan |
Upromise Investments and Vanguard / Vanguard mutual funds |
www.pa529direct.com |
Rhode Island |
CollegeBoundfund (Advisor) |
AllianceBernstein / AllianceBernstein mutual funds |
www.collegeboundfund.com |
Rhode Island |
CollegeBoundfund (Direct) |
AllianceBernstein / AllianceBernstein mutual funds |
ri.collegeboundfund.com/ ri/DesktopContainer.aspx |
South Carolina |
Future Scholar Adviser Program |
Columbia Management / Columbia mutual funds, Transamerica Life |
www.futurescholar.com |
South Carolina |
Future Scholar Direct Program |
Columbia Management / Columbia mutual funds, Transamerica Life |
www.futurescholar.com |
South Dakota |
CollegeAccess 529 (Advisor) |
Allianz Global Investors / multiple funds families |
www.collegeaccess529.com |
South Dakota |
CollegeAccess 529 (Direct) |
Allianz Global Investors / Multiple fund families |
www.collegeaccess529.com/ |
Tennessee |
Tennessee's BEST Savings Plan |
TIAA-CREF / TIAA-CREF mutual funds |
www.tnbest.com |
Texas |
Tomorrow's College Investment Plan |
Enterprise Capital Management / Multiple funds |
www.enterprise529.com |
Utah |
Utah Educational Savings Plan (UESP) Trust |
Utah Higher Education Assistance Authority / Public Treasurer's Investment Fund and Vanguard mutual funds |
www.uesp.org/ |
Vermont |
Vermont Higher Education Investment Plan |
TIAA-CREF / TIAA-CREF mutual funds and Vermont Student Assistance Corporation interest-bearing notes |
services.vsac.org/ilwwcm/connect/VSAC |
Virginia |
CollegeAmerica |
Capital Research and Management / American Funds |
www.americanfunds.com |
Virginia |
Virginia Education Savings Trust (VEST) |
Virginia College Savings Plan Board / Multiple funds |
www.virginia529.com |
West Virginia |
Director SMART529 College Savings Plan |
Hartford Life / Hartford and INVESCO mutual funds |
www.smart529.com |
West Virginia |
SMART529 Select |
Hartford Life / Hartford and INVESCO mutual funds |
www.smart529select.com |
Wisconsin |
EdVest |
Wells Fargo / Multiple funds including Wells Fargo Funds |
www.edvest.com |
Wisconsin |
Tomorrow's Scholar |
Wells Fargo / Multiple funds including Wells Fargo Funds |
www.tomorrowsscholar.com |
Wyoming |
None* [Colorado's 529 plans available to Wyoming residents under special arrangement] |
|
www.collegeinvestwyoming.org |