best 529 option if tax credit not an issue?

[Anonymous]

I have 4 kids- 2 are enrolled in our state 529 plan to maximize our tax credit. I want to open them for the younger 2, and am overwhelmed as to how to determine the best one when the tax break is not an issue- just best returns.
Thank you for advice-

[Anonymous]

We went with Utah. Low fees and Vanguard funds

[Anonymous]

I thought most states let you have a tax break for each kid?

[Anonymous]

Op here.we each have a kid as a beneficiary of an account. We can each claim up to 4000/year. If we max out that (8k total) with those 2- nothing we invest in the other kids' 529, count towards tax credit

[Anonymous]

The web site savingforcollege.com is very helpful. I looked into it, and I think Utah and New York had the best returns.

[Anonymous]

Tip - open 1 account. Most places have a minor annual fee per account. You will aviod this. In the future you can split it and change the name of the child who is the beneficiary.

Ours are through Virginia College Savings Plan - American Funds. We have been very happy having the flexibility to select funds and with the returns.

[Anonymous]

Bumping for any new information on 2013.

In particular, I'm looking for a plan that would allow me to purchase ETFs.

(Not interested in tax credits - I'm already maxing that out in our state.)

Thanks!

[Anonymous]

I think Utah is still the best option. They now offer DFA funds, if you want something that's hard to find. My sense is that a 529 is not going to offer ETFs because it doesn't make sense to put 529 assets into an ETF. If you mean you are looking for one that lets you buy whatever assets you want, I think you should just put the money in a Roth IRA, and you can withdraw the contributions for education.

[Anonymous]

Why would you do a 529 if you're not getting the tax credit? Why wouldn't you just start an investment account in their name that wouldn't have the limitations and restrictions that are on a 529?

[Anonymous]

Anonymous wrote:Why would you do a 529 if you're not getting the tax credit? Why wouldn't you just start an investment account in their name that wouldn't have the limitations and restrictions that are on a 529?

Because the 529 grows tax free.

[Anonymous]

It used to be New York, but I didn't check into Utah's.

[Anonymous]

Check Utah and Nevada and any other Vanguard 529s.

[Anonymous]

Bump. What's the current wisdom on the best 529 plan when the tax credit is not an issue?

We already max out contributions to the DC 529 for our three kids, but I want to move some of the funds to a plan with better performance and lower fees.

Thanks, gurus!

[Anonymous]

Anonymous wrote:I thought most states let you have a tax break for each kid?

This is applicable if you invest in that state's plan. Some state plans are not attractive (poorly invested) and do not guarantee full cost of an instate school. Other states have better plans, but if you invest in another state's plan, the home state might not offer tax breaks.

[Anonymous]

Utah--- has Vanguard, DFA, low admin fees, you can set your own age-based portfolio and can change beneficiaries without rolling funds out of the plan.