Rollover a MD 529 to a Vanguard?

[Anonymous]

Has anyone opened a state 529 plan and rolled it over to the Vanguard plan? Were there any fees associated with rolling over the plans? I tried searching for the answer and didn't come up with anything?

I would like to open a Vanguard 529 but I don't have the $3k minumum just yet so I was thinking about opening a MD 529 and then rolling it over once we've accumulated the 3k necessary for the Vanguard plan. Our family members have also been hassling us to open a college savings plan for our DC so they can start contributing to it. I've tried explaining that I'm waiting to save up for the 3k min. but it just goes over their heads.

[Anonymous]

Just ask them to send you a check! What is the deal anyways? My dad opened one for my daughter. Not sure why they need you to open it. Just open a savings account at a bank which has no minimum for minors.

[Anonymous]

http://www.collegesavingsmd.org/post-a-question.aspx

You could call Maryland 529 to ask or post a question online

[Anonymous]

Vanguard is actually available through several state plans (although their Nevada plan is what they call the "Vanguard 529"). I want to roll over from MD both to get lower fees and a better age-based portfolio* and I decided to use Utah's 529 plan which has no minimum contribution requirement.

I think other states with Vanguard 529 options include New York (very low fees, but some weird rules on transfer of ownership and state tax recapture), Iowa, Ohio, and probably some others.

*I was very surprised to learn that the age-based portfolio for MD (and there is only one vs. a lot of states offer 3-5) keeps a 20% stock allocation even while the kid is in college (and I think the year before freshman year the fund is about 1/3 stocks). I think I am a fairly aggressive investor but I would not keep short-term money in the stock market.

[Anonymous]

Anonymous wrote:Vanguard is actually available through several state plans (although their Nevada plan is what they call the "Vanguard 529"). I want to roll over from MD both to get lower fees and a better age-based portfolio* and I decided to use Utah's 529 plan which has no minimum contribution requirement.

I think other states with Vanguard 529 options include New York (very low fees, but some weird rules on transfer of ownership and state tax recapture), Iowa, Ohio, and probably some others.

*I was very surprised to learn that the age-based portfolio for MD (and there is only one vs. a lot of states offer 3-5) keeps a 20% stock allocation even while the kid is in college (and I think the year before freshman year the fund is about 1/3 stocks). I think I am a fairly aggressive investor but I would not keep short-term money in the stock market.

Thanks, pp. I'm looking at the Vanguard website and it says for the UT plan that Vanguard investments are available, but not Vanguards management or services. I assume that means I have to manage the portfolio myself and make adjustments on a regular basis? Whereas the Vanguard 529, they do this for me?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Vanguard is actually available through several state plans (although their Nevada plan is what they call the "Vanguard 529"). I want to roll over from MD both to get lower fees and a better age-based portfolio* and I decided to use Utah's 529 plan which has no minimum contribution requirement.

I think other states with Vanguard 529 options include New York (very low fees, but some weird rules on transfer of ownership and state tax recapture), Iowa, Ohio, and probably some others.

*I was very surprised to learn that the age-based portfolio for MD (and there is only one vs. a lot of states offer 3-5) keeps a 20% stock allocation even while the kid is in college (and I think the year before freshman year the fund is about 1/3 stocks). I think I am a fairly aggressive investor but I would not keep short-term money in the stock market.

Thanks, pp. I'm looking at the Vanguard website and it says for the UT plan that Vanguard investments are available, but not Vanguards management or services. I assume that means I have to manage the portfolio myself and make adjustments on a regular basis? Whereas the Vanguard 529, they do this for me?

No. I think the difference is that Vanguard has more administrative responsibilities for the Nevada plan (and if you have a VG account the 529 can be integrated into your existing account statement), but as far as "managing the portfolio" meaning whether you are in stocks or bonds or cash-like investments, both plans offer that option, according to the age-based portfolios offered by each plan.

You can see that the Nevada plan offers an age-based portfolio with 5 age brackets (and three options for how aggressive/conservative to be), while Utah offers an age based portfolio with 7 age brackets (and three levels of how aggressive/conservative, or you can pick your own). I like having more age brackets, as I think it allows for more gradual re-allocation of assets (every 3 years vs. every 4-5 years), so I think Utah actually is better from that perspective.

[Anonymous]

Anonymous wrote:Has anyone opened a state 529 plan and rolled it over to the Vanguard plan? Were there any fees associated with rolling over the plans? I tried searching for the answer and didn't come up with anything?

I would like to open a Vanguard 529 but I don't have the $3k minumum just yet so I was thinking about opening a MD 529 and then rolling it over once we've accumulated the 3k necessary for the Vanguard plan. Our family members have also been hassling us to open a college savings plan for our DC so they can start contributing to it. I've tried explaining that I'm waiting to save up for the 3k min. but it just goes over their heads.

As a pp mentioned, they can open one themselves, for the benefit of your child. Also if they do this in their state, they can get the benefit of and state tax deduction that might be available. For example, MD allows up to a $2500K deduction for each account. So for us, we stick with the Maryland plan because we save hundreds come tax time.