529 Plans Indexed Options

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This page provides information on 529 plans utilizing Index Funds. For an examination of 529 plan essential features, please refer to 529 Plans.

Contents

States with no tax deductions or matching contributions

The following states have 529 plans but do not offer any tax deductions or matching contributions for donor contributions to a 529 savings plan. Therefore, it is advisable to select from among the lowest cost plan providers (for age-based plans, currently the Illinois 529; for individual portfolios, currently Ohio) for these states:[1]

States with no tax deductions States with no tax deductions States with no tax deductions



Special Case:

These states offer the same deduction in and out of state, so investors should choose from among the lowest cost plans (currently the Illinois 529 and Ohio 529 plans) but they need to be sure to claim their deduction.

  • Arizona provides a deduction for both in-state and out-of-state 529's.
  • Kansas provides a deduction for both in-state and out-of-state 529's.
  • Maine provides a deduction for both in-state and out-of-state 529's.
  • Missouri provides a deduction for both in-state and out-of-state 529's.
  • Pennsylvania provides a deduction for both in-state and out-of-state 529's.

One can determine the breakeven point where using a lower cost plan option becomes cheaper than a state plan providing tax deductible and/or matched 529 contributions by using the following factors.

  • ( 1.) The tax savings amount (Deductible contribution x marginal state tax rate) + match.
  • ( 2.) The cost differential between the plan and the lower cost plan.
  • Dividing (1) by (2) provides the capital accumulation point where the lower cost plan subsequently overtakes the tax benefit.
A number of states now recapture deducted 529 contribution taxes if a plan is transferred to an out of state plan. Refer to this table for a list of these states.

The following states offer Vanguard Portfolios in their 529 plans.

The following states have at least one Vanguard Index portfolio in their offerings. Footnotes indicate plans closed to out of state investors.

529 Plans - Vanguard Funds 529 Plans - Vanguard Funds 529 Plans - Vanguard Funds 529 Plans - Vanguard Funds




The following tabulation of 529 plan costs is based on information from a SavingsforCollege.com fee study and from plan documents:

Vanguard 529 Plan Expenses
Plan ER 10-Year Costs on $10,000 Investment
Louisiana [2]0.06% - 0.32%19 - 320
Illinois0.20% - 0.23%355 - 368
Oregon0.21% - .047%268 - 469
Ohio0.21% -0.34%243 - 591
Kansas0.25% -0.28%319 -344
Utah0.25% -0.37%432 - 589
North Carolina0.30% -0.52%377 - 407
Virginia0.31% - 0.57%383 - 681
Wisconsin0.36% - 0.77%579 - 726
Rhode Island [2]0.39%468
West Virginia [2]0.39%493
New York0.49%689
Iowa0.50%653
Missouri0.62%774
Nebraska0.65% -0.84%811
Nevada0.65%628 -871
Pennsylvania0.70% - 0.75%871
Colorado0.75%930
Hawaii0.75%1123
Idaho0.75%930
Arkansas0.75%930
North Dakota0.85%1049

Note: Rhode Island and West Virginia provide only one Vanguard Index Fund; Wisconsin provides only two Vanguard funds.

Source: Saving for College and state disclosure documents


The following states offer 529 plans run by TIAA-CREF:

The following 529 Plans run by TIAA-CREF are available to all out of state residents.

TIAA-CREF 529 Plans TI/AA-CREF 529 Plans

The following tabulation of 529 plan costs is based on information from a SavingsforCollege.com fee study and from plan documents:

TIAA-CREF 529 Plan Expenses
Plan ER 10-Year Costs on $10,000 Investment
Michigan0.45%568
Georgia0.51% - 0.75%629 - 945
Minnesota0.5125% to 0.6125%812
Connecticut0.65%812
Kentucky0.80%764
Vermont0.80%993
Oklahoma0.79% - 0.99%981-1241
Mississippi0.88% - 0.99%1112-1369

Source: Saving for College and state disclosure documents


The following states offer 529 plans run by Fidelity:


The following tabulation of 529 plan costs is based on information from a SavingsforCollege.com fee study and from plan documents:

Fidelity 529 Plan Expenses (Index Portfolios)
Plan ER 10-Year Costs on $10,000 Investment
Arizona0.50%628
California0.50%628
Delaware0.50%628
Massachusetts0.50%628
New Hampshire0.50%628

Source: Saving for College and state disclosure documents


Additional states offering indexed portfolios

The following states offer index funds in their 529 savings plans. Footnoted entries are not available to out of state residents.

States with Indexed Portfolios States with Indexed Portfolios




Collegesure 529 Tuition Indexed Programs

Additional Links

Notes

  1. ↑ For a complete look at state tax deductions and matches for 529 plan contributions see State Tax Deductions for 529 Contributions
  2. ↑ 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 not open to non residents.
  3. ↑ The Arkansas Ishares 529 Plan is only available through fee-only Registered Investment Advisors.

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College Savings
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