Louisiana 529 plan archive

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The Louisiana 529 plan archive page provides information on direct-sold 529 plans and highlights indexed portfolios. All information is derived from Savingforcollege.com and from 529 plan sites and disclosure documents. If you would like to compare this plan with other direct sold plans, use these Compare by Plan Name and Compare by Feature tools.

  • Open to Residents (either beneficiary or account owner)
  • Not open to non-residents
Louisiana 529 Plan:
Program match on contributions: The state provides an earnings enhancement equal to 2% to 14% (depending the account owner's Federal AGI) of a Louisiana participant's contributions when the account is used for qualifying expenses.
State tax deduction or credit for contributions: Contributions to the Louisiana 529 plan of up to $2,400 per account per year for an individual taxpayer, and $4,800 per beneficiary per year for married taxpayers filing jointly, are deductible in computing Louisiana taxable income. Any unused cap amount with an active account may be carried forward to increase the cap in subsequent tax years. Double deductions of up to $4,800 per year ($9,600 married file jointly) may be claimed for an account opened for an eligible needy, non-related beneficiary. Contribution deadline is December 31.
State tax recapture provisions: The principal portion of nonqualified withdrawals from this plan are included in Louisiana taxable income to the extent of prior Louisiana tax deductions. Rollovers are not subject to recapture.
Age-based investment options: The three Age-Based Options (Moderate, Growth, and Aggressive tacks) contains four underlying portfolios. Contributions are placed into the appropriate Vanguard LifeStrategy fund, corresponding to the beneficiary’s age, and later reassigned to more conservative portfolios. For all three tracks, when the beneficiary is age 16, monies are moved to the Louisiana Principal Protection fund as the beneficiary approaches college age.
Static investment options: Select between the Louisiana Principal Protection Option (100% invested in the state-managed Fixed Earnings Fund), Vanguard Total World Stock Index Fund, Vanguard Institutional Total Stock Market Index Fund, Vanguard Total International Stock Index Fund, and three U.S. equity index funds.
Expenses: 0.045% - 0.45%; None for Fixed Earnings Fund option (Louisiana Principal Protection Option).
Policy Regarding Ownership Changes: Account ownership may not be transferred prior to the owner's death or incapacity.

Investment options

Age-based

The Louisiana 529 savings plan offers three age-based portfolios utilizing Vanguard Lifestrategy funds.

Age-Based Index Portfolios
Underlying Vanguard Funds
Age Aggressive Growth Moderate
0-5 LifeStrategy Growth
80/20
LifeStrategy Moderate Growth
60/40
0-9 LifeStrategy Growth
80/20
6-10 LifeStrategy Moderate Growth
60/40
LifeStrategy Conservative Growth
40/60
9-12 LifeStrategy Moderate Growth
60/40
11-15 LifeStrategy Conservative Growth
40/60
LifeStrategy Income
20/80
13-15 LifeStrategy Conservative Growth
40/60
16 Louisiana Principal Protection
100
Louisiana Principal Protection
100
Louisiana Principal Protection
100


Standalone

The plan also offers these standalone individual funds.

Standalone funds
Vanguard funds
Funds Expense ratio
Total World Index 0.45%
Institutional Total Stock Market Index 0.045%
Institutional Total International Stock Index 0.15%
Signal Large Cap Index 0.12%
Signal Mid Cap Index 0.14%
Signal Small Cap Index 0.14%

The World Stock fund also has a 0.25% purchase fee


Earnings enhancement

The table below provides the earning enhancement rates used in the state's 529 matching program.

Earnings Enhancement Rates:
Reported Adjusted Gross Income Earnings Enhancement Rate
$0 to $29,999 14%
$30,000 to $44,999 12%
$45,000 to $59,999 9%
$60,000 to $74,999 6%
$75,000 to $99,999 4%
$100,000 and above 2%


External links