Guide to Leading 529 College Savings Plans
Explore the top-rated 529 college savings plans designed to help families save effectively for higher education. Learn about various state-sponsored options, their investment choices, and unique features such as tax advantages and cashback rewards. Starting early and selecting reliable plans can maximize growth and ensure funds are available when needed.
529 college savings plans are state-sponsored accounts designed to assist families in funding higher education. When choosing a plan, consider overall features beyond just tax advantages. The power of compound interest means the earlier you start saving, the more growth you'll see over time. Each state offers at least one 529 plan, providing a range of options. Earnings and withdrawals are tax-free, making these plans attractive for long-term college funding.
Popular options include the Utah Educational Savings Plan, featuring Vanguard and Dimensional funds, and a federally insured account from the state. It is highly rated for reliability and performance. Another top choice is New York's direct plan, utilizing Vanguard mutual funds, with the added benefit of linking to Upromise for cashback rewards. Virginia's 529 inVEST offers Vanguard and Parnassus funds, with automatic age-based adjustments as college approaches. The USAA 529 plan in Nevada combines USAA mutual funds with flexible investment options.
Alaska's T.Rowe Price plan is recognized for strong performance, offering age-based and static options. Florida’s plan manages funds through established firms, providing multiple investment portfolios. Ohio’s CollegeAdvantage offers various age-based and static options, including funds from Vanguard, PIMCO, and GE Asset Management. Iowa's College Savings Plan ranks high for reliability with user-friendly costs, offering multiple static options. Maryland’s plan provides diversified portfolios with flexible options, and Learning Quest in Kansas features several static and age-based choices, including Vanguard funds.
