Saving for College: A Guide to 529 Plans by State

Saving for College: A Guide to 529 Plans by State

529 plans are tax-advantaged investment accounts designed to help families save for future education expenses. They offer a variety of benefits, including tax-free growth on contributions and earnings used for qualified education expenses.

Here's a quick breakdown of the benefits of 529 plans:

• Tax-free growth: Contributions to a 529 plan grow tax-free and withdrawals used for qualified education expenses are not taxed.
• State tax benefits: Many states offer additional tax benefits for residents who contribute to their state's 529 plan.
• Flexible investment options: 529 plans offer a variety of investment options to suit your risk tolerance and investment goals.
• Early contribution benefits: Some states offer incentives for starting a 529 plan early for your child.

Choosing the Right 529 Plan

When choosing a 529 plan, there are several factors to consider, including:

• State tax benefits: If you are a resident of a state that offers tax benefits for contributions to its 529 plan, you may want to consider investing in your state's plan.
• Investment options: Consider the investment options offered by the plan and choose one that aligns with your risk tolerance and investment goals.
• Fees: Compare the fees associated with different 529 plans.

529 Plans by State

While you can invest in any state's 529 plan, regardless of your residency, some states offer tax benefits to residents who contribute to their in-state plan. Here are links to resources that provide details on 529 plans by state:

• Alabama: CollegeCounts - https://www.collegecounts529advisor.com/
• Alaska: Alaska 529 - https://www.alaska529plan.com/
• Arizona: AZ529 - https://az529.gov/
• Arkansas: Arkansas Brighter Future 529 - https://brighterfuturedirect529.com/
• California: ScholarShare 529 -https://www.scholarshare529.com/
• Colorado: CollegeInvest - https://www.collegeinvest.org/
• Connecticut: Connecticut Higher Education Trust (CHET) - https://www.aboutchet.com/
• Delaware: DE529 - https://treasurer.delaware.gov/education-savings-plan/
• District of Columbia: DC College Savings Plan - https://www.dccollegesavings.com/
• Florida: Florida 529 Savings Plan - https://www.myfloridaprepaid.com/savings-plan/
• Georgia: Path2College 529 Plan - https://www.path2college529.com/
• Hawaii: HI529 - https://budget.hawaii.gov/finance/hi529/
• Idaho: IDeal - Idaho College Savings Program - https://www.idsave.com
• Illinois: Bright Start 529 Plan - https://www.illinoistreasurer.gov/Individuals/College_Savings/bright_start
• Indiana: Indiana529 Direct - https://www.indiana529direct.com/
• Iowa: College Savings Iowa 529 - https://www.isave529.com
• Kansas: Learning Quest 529 Education Savings Plan - https://www.learningquest.com/home.html
• Kentucky: KY Saves 529 - https://www.kysaves.com
• Louisiana: Louisiana's Student Tuition Assistance & Revenue Trust - https://www.startsaving.la.gov/
• Maine: NextGen 529 - https://www.nextgenforme.com/faq/
• Maryland: Maryland 529 - https://maryland529.com/
• Massachusetts: U.Fund 529 College Investing Plan - https://www.mefa.org/ways-to-save/mefa-u-fund/
• Michigan: Michigan Education Savings Program - https://www.misaves.com/
• Minnesota: MN Saves - https://www.mnsaves.org/
• Mississippi: College Savings Mississippi - https://treasury.ms.gov/for-citizens/college-savings-mississippi/for-parents/
• Missouri: MOST — Missouri's 529 Education Plan - https://www.missourimost.org/
• Montana: Achieve Montana - https://achievemontana.com/
• Nebraska: NEST 529 Advisor Plan - https://nest529advisor.com/
• Nevada: NV529PLANS - https://www.nevadatreasurer.gov/CollegeSavings/CSP_Home/
• New Hampshire: UNIQUE College Investing Plan; Fidelity Advisor 529 Plan - https://www.nh.gov/treasury/college-savings/unique.htm
• New Jersey: NJBEST - https://www.njbest.com/
• New Mexico: The Education Plan - https://www.nmetb.org/plans
• New York: New York's 529 College Savings Program - https://www.nysaves.org/
• North Carolina: NC 529 Plan - https://www.cfnc.org/save-for-college/
• North Dakota: College SAVE - https://www.collegesave4u.com/
• Ohio: Ohio's 529 College Advantage - https://www.collegeadvantage.com/
• Oklahoma: Oklahoma 529 College Savings Plan - https://www.oklahoma529.com/
• Oregon: Oregon College Savings Plan - https://www.oregoncollegesavings.com/
• Pennsylvania: PA 529 - https://www.pa529.com
• Rhode Island: CollegeBound Saver - https://treasury.ri.gov/programs/collegebound-saver-529-plan-0
• South Carolina: Future Scholar - https://futurescholar.com/
• South Dakota: CollegeAccess 529 - https://www.collegeaccess529.com/
• Tennessee: TNStars - https://tnstars.treasury.tn.gov/
• Texas: Texas College Savings Plan - https://www.texascollegesavings.com/
• Utah: My529 - https://www.my529.org/
• Vermont: VT529 - https://www.vt529.org/
• Virginia: Virginia 529 - https://www.virginia529.com/
• Washington: DreamAhead College Investment Plan - https://529.wa.gov/
• West Virginia: SMART529 Select - https://www.smart529select.com/
• Wisconsin: Edvest529 - https://www.edvest.com/
• Wyoming: Wyoming does not have its own state-sponsored 529 plan. Residents can invest in any other state's 529 plan

Additional Tips for Saving for College

• Start early: The earlier you start saving for college, the more time your money has to grow.
• Contribute regularly: Even small contributions can add up over time.
• Consider automatic contributions: Set up automatic contributions to your 529 plan to make saving for college a habit.
• Explore other options: In addition to 529 plans, there are other ways to save for college, such as Coverdell education savings accounts (ESAs) and scholarships.

By following these tips, you can get started on the road to saving for your child's education.

This information is for informational purposes only and is not intended as specific legal, investment or tax advice. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.  Past performance is no guarantee of future results.  Vertical Ascent Wealth Management does not render legal, accounting, or tax advice. Please consult your tax or legal advisors before taking any action that may have tax consequences.