AZ Resident Seeking Vanguard 529

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Topic Author
JHart
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Joined: Wed Sep 14, 2016 9:14 pm

AZ Resident Seeking Vanguard 529

Post by JHart »

I finally decided to set up 529's for my kids, ages 8, 6 and 3. I have to admit I am overwhelmed by the choices. My friend a few years ago said go with Utah, but now people are saying Utah is no longer low cost. I'm hoping some of the bright folks here will have insights.

I am an Arizona resident. Ideally I'd like a direct-sold Vanguard option, since most of my assets are at Vanguard and it's nice to see them altogether. It seems like New York is a good option? Thoughts?
livesoft
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Re: AZ Resident Seeking Vanguard 529

Post by livesoft »

Utah is low cost. So are many other 529 plans. Many states use Vanguard funds in their 529 plans, so it is very hard to go wrong.

The Arizona 529 plan has a low-cost index funds option through Fidelity, so that may not be a bad choice either. However, while I was using the internet to get more info, I found it rather difficult, so I can see why it would be confusing.

If you insist on direct-sold Vanguard, then I think only the Nevada 529 plan as sold through Vanguard is your option. Arizona allows a deduction on state income tax for some contribution to any state plan, so the Nevada 529 plan would work for that (as would any 529 plan).
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runner3081
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Re: AZ Resident Seeking Vanguard 529

Post by runner3081 »

We are in Arizona and use the Ohio plan with vanguard options.
Pacific
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Re: AZ Resident Seeking Vanguard 529

Post by Pacific »

Arizona here using Nevada plan.
Miriam2
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Re: AZ Resident Seeking Vanguard 529

Post by Miriam2 »

Here is Morningstar's latest article with their ratings of the plans -

"The Top 529 College Savings Plans for 2020"
https://www.morningstar.com/articles/10 ... ns-of-2020
John Bogle, "The Twelve Pillars of [Financial] Wisdom"- Pillar 5: Diversify, Diversify, Diversify.
retired@50
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Re: AZ Resident Seeking Vanguard 529

Post by retired@50 »

JHart wrote: Sat Nov 21, 2020 8:43 pm I finally decided to set up 529's for my kids, ages 8, 6 and 3. I have to admit I am overwhelmed by the choices. My friend a few years ago said go with Utah, but now people are saying Utah is no longer low cost. I'm hoping some of the bright folks here will have insights.

I am an Arizona resident. Ideally I'd like a direct-sold Vanguard option, since most of my assets are at Vanguard and it's nice to see them altogether. It seems like New York is a good option? Thoughts?
You realize that Arizona provides a tax break for AZ plan participants?

It's not with Vanguard, but getting a $4,000 state income tax deduction might tip the scales... Look for the "index" options on the investment choices tab. ER = .14% which isn't bad for a 529 plan.

See link: https://www.savingforcollege.com/529-pl ... vings-plan

Otherwise, call Vanguard and use the Nevada plan.

Regards,
This is one person's opinion. Nothing more.
wootwoot
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Re: AZ Resident Seeking Vanguard 529

Post by wootwoot »

retired@50 wrote: Sun Nov 22, 2020 12:23 am
JHart wrote: Sat Nov 21, 2020 8:43 pm I finally decided to set up 529's for my kids, ages 8, 6 and 3. I have to admit I am overwhelmed by the choices. My friend a few years ago said go with Utah, but now people are saying Utah is no longer low cost. I'm hoping some of the bright folks here will have insights.

I am an Arizona resident. Ideally I'd like a direct-sold Vanguard option, since most of my assets are at Vanguard and it's nice to see them altogether. It seems like New York is a good option? Thoughts?
You realize that Arizona provides a tax break for AZ plan participants?

It's not with Vanguard, but getting a $4,000 state income tax deduction might tip the scales... Look for the "index" options on the investment choices tab. ER = .14% which isn't bad for a 529 plan.

See link: https://www.savingforcollege.com/529-pl ... vings-plan

Otherwise, call Vanguard and use the Nevada plan.

Regards,
AZ is one of the states that's gives a tax break no matter which 529 plan the OP invests in. Nevada sounds like a good fit the for OP.
Dicast
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Re: AZ Resident Seeking Vanguard 529

Post by Dicast »

Kansas here using Nevada plan. I can deduct no matter which plan I have and I have had zero issues with using Vanguard thru Nevada.
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HueyLD
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Re: AZ Resident Seeking Vanguard 529

Post by HueyLD »

wootwoot wrote: Sun Nov 22, 2020 12:27 am AZ is one of the states that's gives a tax break no matter which 529 plan the OP invests in. Nevada sounds like a good fit the for OP.
+1. See AZ 140 instructions for Line 34.
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camper
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Re: AZ Resident Seeking Vanguard 529

Post by camper »

AZ resident here. We use the AZ Fidelity 529 plan. We have tied Fidelity VISA card with 2% rewards to the account. As others have stated, a married couple can get a state income tax deduction of up to $4k. Any 529 plan can afford you this opportunity. https://az529.gov/what-is-a-529-plan/az-tax-incentives/
Topic Author
JHart
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Re: AZ Resident Seeking Vanguard 529

Post by JHart »

Great advice here. I think I'm going to open three Nevada plans. That plan gets a silver rating in the aforementioned Morningstar article. Looks like grandma in PA can get a state tax deduction for contributing - nice!

@camper I'm using the Citibank 2% cash back card right now. Any benefit to using the Fidelity 2% card?
retired@50
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Re: AZ Resident Seeking Vanguard 529

Post by retired@50 »

wootwoot wrote: Sun Nov 22, 2020 12:27 am
AZ is one of the states that's gives a tax break no matter which 529 plan the OP invests in. Nevada sounds like a good fit the for OP.
Thanks for mentioning that. I was not aware that AZ didn't require a home state plan investment.

Regards,
This is one person's opinion. Nothing more.
spmysp1
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Re: AZ Resident Seeking Vanguard 529

Post by spmysp1 »

PA resident using Nevada 529 for 8 years. no regrets and very happy being able to see and manage 529s along with other vanguard accounts from a single homepage.
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