Which 529 plan?

[smurflady]

Any recommendations on which 529 plan is best when there is no state deduction? NY seems to have the lowest fees but I don't like the big changes in the aged based AA every 5 years. Should I just go with a state that has an AA that I like and reasonable fees (under 0.3%)?

[mickcris]

Any recommendations on which 529 plan is best when there is no state deduction? NY seems to have the lowest fees but I don't like the big changes in the aged based AA every 5 years. Should I just go with a state that has an AA that I like and reasonable fees (under 0.3%)?

You can set up your AA however you want in the NY plan by using the individual portfolios. Then adjust it yourself when you feel it is appropriate:
https://uii.nysaves.s.upromise.com/cont ... tions.html

You can also do this in the Utah plan that has a very low ER also:
http://www.uesp.org/Investment-Info/Cus ... tions.aspx

[feh]

Any recommendations on which 529 plan is best when there is no state deduction? NY seems to have the lowest fees but I don't like the big changes in the aged based AA every 5 years. Should I just go with a state that has an AA that I like and reasonable fees (under 0.3%)?

You can set up your AA however you want in the NY plan by using the individual portfolios. Then adjust it yourself when you feel it is appropriate:
https://uii.nysaves.s.upromise.com/cont ... tions.html

You can also do this in the Utah plan that has a very low ER also:
http://www.uesp.org/Investment-Info/Cus ... tions.aspx

We live in WI but chose the Utah plan. That was 10 years ago, so the landscape may have changed, but it was a great plan.

[robocop]

Be careful if you want to change account owners- the NY plan does NOT allow ownership changes to the account.

That made it a dealbreaker for me (an aunt), who is opening the account but may want to change ownership to the parents in the future depending on our situation.

I decided to stick with WI, as it has very low expenses if you have a 2 fund portfolio (total US stock and bond index funds)- stock is .15 and bond is .21. It permits change in ownership, which is also convenient.

[JamesSFO]

What's your home state by the way and who is the provider? I went with the CA plan when it was with Fidelity and stuck with it at TIAA-CREF and the passive choices are quite low ERs passive age based investments are 0.20-to-0.30 ER and there are individual passive investments around that same range.

I personally preferred it at Fidelity, but the TIAA-CREF options are fine and the phone/web support is fine.

[lwfitzge]

we chose Vanguard Nevada plan..

[Snikda]

i have started 529s for my two boys over the past two years... both with Utah (http://www.uesp.org), which has made the top 5 best 529 list from multiple raters/publications many times over the years.

[kenyan]

Most of the excellent plans have been noted above: NY, NV, UT (using Vanguard funds); CA, WI (TIAA-CREF).

The large AA changes in the age-based NY plan turned me off as well initially, but you can just set your AA manually. If you don't want to deal with that, don't go for the NY plan.

NV has a larger initial investment requirement than the other plans, $3k. One very minor benefit would be that it counts toward your Vanguard Flagship status, if that matters to you.

The TIAA-CREF plans have a Stable Value option that has a better yield than cash accounts.

I am investing in both the NY and CA plans for different children.

[brisni]

For my older kids, I have been using Vanguard NV. However, for my newborn last year, I decided to go with Fidelity's UNIQUE.
It has index funds with ER down to 0.25%. You can also get their American Express card which has 2% rebate going into the 529.

- Brian

[JamesSFO]

Most of the excellent plans have been noted above: NY, NV, UT (using Vanguard funds); CA, WI (TIAA-CREF).

The large AA changes in the age-based NY plan turned me off as well initially, but you can just set your AA manually. If you don't want to deal with that, don't go for the NY plan.

NV has a larger initial investment requirement than the other plans, $3k. One very minor benefit would be that it counts toward your Vanguard Flagship status, if that matters to you.

The TIAA-CREF plans have a Stable Value option that has a better yield than cash accounts.

I am investing in both the NY and CA plans for different children.

Good summary!

[Calhoon]

http://www.savingforcollege.com/

[smurflady]

Thanks all - I decided on the UT plan. I like being able to set a custom AA that changes over time - set it and forget it!

[fabdog]

For our grandson we started in the Utah plan until we got to $3K, then moved to the NV plan. Utah has no minimum and all Vanguard funds but does charge a small administrative fee on assets, and there is a separate fee for maintenance which can be avoided by getting statements online

Mike

[Gustie13]

Does anyone do different 529s in different states for the same beneficiary?
Here is why I ask: My friends live in MN and can't get any state tax deduction so they could pick whichever state plan they prefer for their newborn but they have grandparents in states that do offer a tax deduction, so would it make sense for the grandparents to start a separate 529 for the same newborn?

[JamesSFO]

Does anyone do different 529s in different states for the same beneficiary?
Here is why I ask: My friends live in MN and can't get any state tax deduction so they could pick whichever state plan they prefer for their newborn but they have grandparents in states that do offer a tax deduction, so would it make sense for the grandparents to start a separate 529 for the same newborn?

My guess is lots of people do this, but to be clear there is a pair:

PARTICIPANT and BENEFICIARY

So you are talking about:

Grandparent 1/2 - Beneficiary 1 - Account in UT
Grandparent 3/4 - Beneficiary 1 - Account in IL
Parent - Beneficiary 1 - Account in NY

That is likely common and makes a lot of sense unless the grandparents want to cede control of the money to you.

What is likely to be uncommon would be for the same participant/beneficiary to have multiple accounts in different states.