Top 5 Popular 529 College Savings Plans You Should Know About
Explore the top 529 college savings plans available nationwide. This guide highlights key features of popular options like NY, Maryland, Utah, Virginia, and Nevada plans. Discover how to best save for future education costs with low fees, flexible investment choices, and tax advantages. Whether you prefer direct plans, advisor-managed options, or prepaid plans, find the right strategy to meet your family’s needs. Learn about plan benefits, rankings, and key considerations to make informed decisions for college savings.
Discover the Leading 529 College Savings Options
When planning for future educational expenses, many states offer valuable 529 savings benefits. If you prefer not to use your state's plan or want additional options, exploring some of the best 529 plans available nationwide is a smart move. These plans have no residency restrictions, allowing you to invest regardless of where you live. A 529 account is a dedicated savings vehicle that helps cover college costs and other educational expenses. Contributions can go up to $465 monthly, making it accessible for many families. Here are five top-rated 529 plans to consider:
- New York 529 College Savings Program (Direct Plan)
Known for low fees and flexible age-based portfolios, this plan allows for moderate or conservative investments aligned with your child's age. It ranks highly on SavingforCollege.com, featuring multiple age-based and static options. - Maryland College Investment Plan
This plan, managed by T. Rowe Price, has received a gold rating from Morningstar, offering a broad selection of quality funds and robust performance. - Utah Educational Savings Plan (USEP)
Favored for its customization and high ratings from Kiplinger, Utah’s plan offers five age-based and nine static options, with excellent 10-year investment performance rankings. - Virginia CollegeAmerica
Esteemed for its low fees and strong returns, this plan manages substantial assets and is praised for its cost-effectiveness among actively managed plans. - Nevada Vanguard 529 Savings Plan
Recognized by Morningstar for its affordability and diverse options, it features three age-based and 19 static plans, investing heavily in Vanguard index funds.
Plans can also be purchased directly through states or via financial advisors. If you prefer guided management or want to consolidate your investments, working with an advisor or choosing a state-specific 529 plan is beneficial. Additionally, prepaid 529 plans allow you to lock in current tuition rates by paying in advance for future education. These are mostly suited for in-state public institutions and may have limitations on qualified expenses like housing or books. Overall, selecting the right 529 plan depends on your financial goals and investment preferences, with the best options being those that simple contribute and maximize available tax benefits.
