Which 529? Starting from scratch

[Anonymous]

We don't have any college savings at all yet for our 4yo and 1yo. We'd like to open 529s for them. We cannot contribute a ton right now but every little bit helps right? I've been setting aside small amounts each month in cash (when I save on a good deal, I put the savings aside). We also want to put our tax refunds in.

Which should we use?

I was looking at Sallie Mae since I am familiar with them from student loans.

We bank with usaa and wells fargo. We're VA residents at the moment but that will change in a couple of years so we are not interested in the VA plans.

Any 529's geared toward military/veteran's kids?

[Anonymous]

if you are not interested in VA plans then I would go with Utah-- low fees, good investment options (such as Vanguard Index funds) and good flexibility for age-based investments.

[Anonymous]

Just FYI, if you're Virginia residents you can deduct up to $4000 per VEST account (state 529 plan) per year on your Virginia taxes.

[Anonymous]

You should consider the VA Vest plan while you are here. Worth it for the 5.75% immediate return from the deduction. You can use it for any college, not just VA. They have several vanguard funds with a minimal administration fee tacked on. You would have to pay VA tax if you later roll that amount over to a different state plan, but no reason (that I can think of) why you couldn't just leave it in the VA plan until you use it to pay for college.

[Anonymous]

I'd recommend the VA VEST plan as well. It has very low fees, lots of food investment choices, and you can deduct any contributions from your VA state income taxes. Just because you are going to move in a few years, doesn't mean that you shouldn't take advantage of the VA tax deduction now. As stated above, you can use the money for any school, not just schools in VA.

As for what to invest in, personally I would just split my investments between Vanguard Total Stock Market, Vanguard Total International Stock Market, and Vanguard Total Bond Market.

[Anonymous]

VA Vest

[Anonymous]

I have same question and I am in MD, though we will not likely be here for the long haul either. I have 3 to send starting in 2023. Wow scary typing that. Thanks.

[Anonymous]

I was in the same boat. Military, many moves, no state income tax considerations. I chose Utah due to low fees. They have been great.