So confused about 529s

[Anonymous]

*very

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes. 529 plans are just savings vehicles for college expenses. They are not prepaid plans that have to be used for a particular state's school.

Right I understand that. I just meant in terms of fees and investment options. Is the primary benefit of the va plan the fact that the tax deduction offsets fees if you are a resident, or is it competitive enough with other plans enough that when we move away, it would still be considered a good plan with low fees and good potential returns.

Va is supposed to be a good plan if you live in the state because of the deduction. It is not a good plan for an out of state family.

Thank you, this is what I was getting at. Does anyone know if there are other plans that are beneficial for out of staters? I have read that Utah and perhaps Nevada are good plans?

[Anonymous]

I am in DC and am very happy with UT's plan. The "fees" are a joke. Seriously, I love it.

[Anonymous]

Take a look at savingforcollege.com. A very helpful website. It sounds like you should do the Virginia 529 plan for now, so you get the tax deduction in-state. If you move, then consider changing the plan. I am in DC, and am in the DC 529 plan right now. But I contribute more than $4k/year (maximum tax deduction). So I am considering contributing $4k/year to DC, and opening up 529 plans in either NY or Utah for everything above $4k/year.

[Anonymous]

Vanguard's Utah and Nevada plans are very good. There are other options out there too, but I think those are very good choices.