Announcement

Collapse
No announcement yet.

Out of state 529 options

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Out of state 529 options

    Any recommendations on which states offer the best low cost investment options for out of state 529 plans?

    We have maxxed out our yearly in-state tax deduction benefits so thought we'd shop around for the best options. Was considering Nevada's plan which allows use of Vanguard index funds.

  • #2
    Last time I checked the three (3) lowest cost nationwide 529 plans were in order CA, NY and Fidelity (AZ, CT, DE, MA, NH). They are all within a handful of bps for the ERs.

    Nevada and Utah used to be in the top 3 lowest cost plans with NY. That hasn't been true for many years. There are several state's now with lower cost plans.

    The only real benefits now are access from a Vanguard login (NV) and access to DFA funds (UT). I wouldn't rollover if you already have accounts, but they wouldn't be my first choice for new accounts.

    Comment


    • #3
      If this matters to you or not, remember in quite a few states, the 529 plan is not asset protected unless you are using the in-state plan your state offers. Guess it depends how fat you are going to stuff the plan and whether or not asset protection matters to you.

      Comment


      • #4
        NY is VG-based. I used it along with my GA 529. Used to be a decent expense difference between the two plans however GA has narrowed the gap a lot. Now I would just use GA because the difference is so small.

        Check the expense spread between your state and NY (UT is also a popular choice) and see if it’s worth setting up an additional account.

        Comment


        • #5
          Originally posted by bean1970 View Post
          If this matters to you or not, remember in quite a few states, the 529 plan is not asset protected unless you are using the in-state plan your state offers. Guess it depends how fat you are going to stuff the plan and whether or not asset protection matters to you.
          This does seem to be true in our state and I was not aware of this. Thanks!

          Comment


          • #6
            CA never got love bc they use TIAA CREF and not VG but they have a broad index equities portfolio for like 0.10 all in last i checked

            watch next month bc they’ve done “5 29 day” where you get like $50 for funding an account

            Comment

            Working...
            X