Least expensive 529 plans by state

Category: Education

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According to a recent report, 529 college-savings plans are becoming less expensive as options increase and fees decrease. With the skyrocketing price of college education, planning for a loved one’s future has taken on new significance.

The study evaluated all of the 529 plans in the United States, which, as of December 31, 2012, totaled at 86 different plans and totaled in excess of $166 billion in total assets under management, an increase of 25 percent from the previous year.

Named after Section 529 of the Internal Revenue Code, the 529 college plan is offered by almost every state. The Internal Revenue Code outlines further details on these plans and explains how those who contribute to these savings plans aren’t required to pay taxes on the funds invested. Benefactors, including grandparents and parents, can establish a plan for a named beneficiary right after the child is born.

The following are the 15 least expensive 529 plans, based on the average total expense ratio for that specific plan:

State: South Carolina
Plan: Future Scholar 529 (Direct)
Average total expense ratio: 0.13 percent

State: New York
Plan: New York’s 529 Program (Direct)
Average total expense ratio: 0.17 percent

State: Michigan
Plan: Michigan Education Savings Program
Average total expense ratio: 0.25 percent

State: Wisconsin
Plan: EdVest 529 Plan
Average total expense ratio: 0.25 percent

State: Utah
Plan: Utah Educational Savings Plan
Average total expense ratio: 0.25 percent

State: Iowa
Plan: College Savings Iowa 529 Plan
Average total expense ratio: 0.28 percent

State: Nevada
Plan: The Vanguard 529 College Savings Plan
Average total expense ratio: 0.29 percent

State: Georgia
Plan: Path2College 529 Plan
Average total expense ratio: 0.34 percent

State: Ohio
Plan: CollegeAdvantage 529 Savings Plan
Average total expense ratio: 0.35 percent

State: Missouri
Plan: Missouri’s 529 Plan
Average total expense ratio: 0.35 percent

State: California
Plan: ScholarShare College Savings Plan
Average total expense ratio: 0.36 percent

State: North Carolina
Plan: National College Savings Program
Average total expense ratio: 0.37 percent

State: Alabama
Plan: CollegeCounts 529 Fund
Average total expense ratio: 0.38 percent

State: Connecticut
Plan: Connecticut Higher Education Trust
Average total expense ratio: 0.40 percent

State: Illinois
Plan: Bright Start College Savings (Direct)
Average total expense ratio: 0.41 percent

Would you like to start investing in a 529 plan for your child? Whether you want to begin saving now or you have a loved one who is already ready to attend college, we can help if you’re receiving structured settlement payments. You can sell structured settlement payment streams for a lump sum payout and use the money to pay for college tuition. Contact Peachtree Financial Solutions today to learn more about how the settlement funding process works, and to receive your completely free quote!

Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.

Tags: 529 plans, college expenses, College Tuition

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