New 529 account: direct vs through brokerage?

[hnnguyen3]

Hello everyone,

I'm planning to open a 529 account for my 4 yr old daughter.  I've decided to go with California's 529 given the low administrative fees and ER. My plan is invest in a total domestic index fund.  My question is should I open the account direct on CA's 529 website or through fidelity where my 401(a) and Roth IRA are located?

I can't find to Google search the pros/cons for this.

Thanks in advance.

 

[cgossage]

hnnguyen3 wrote:

Hello everyone,

I’m planning to open a 529 account for my 4 yr old daughter.  I’ve decided to go with California’s 529 given the low administrative fees and ER. My plan is invest in a total domestic index fund.  My question is should I open the account direct on CA’s 529 website or through fidelity where my 401(a) and Roth IRA are located?

I can’t find to Google search the pros/cons for this.

Thanks in advance.

 

Click to expand...

I don't believe you can open the CA 529 account through Fidelity.  You can only open the 529 account through the institution offering it.  Fidelity offers 529 plans sponsored by New Hampshire, Arizona, Delaware, and Massachusetts.  It's not like an IRA where you can effectively open the same account at any brokerage of your choice.

[hnnguyen3]

Thank you for answering my question.  It helps clear up my confusion.