| If you are investing in a 529 state plan, it is easy | | | | Oklahoma, Oregon, Pennsylvania, Rhode Island, |
| to compare. The reason is that American citizens | | | | South Carolina, Utah, Vermont, Virginia, West |
| are allowed to take any state plan, and then they | | | | Virginia and Wisconsin. |
| can even switch between plans if they want to. | | | | 2. Look for the expenses of the plans. The |
| That is the reason everyone wants to compare | | | | expenses you will have to bear when taking a |
| 529 plans before they actually open an account. | | | | plan will be the enrollment fees, annual |
| So how do you make the comparison? What do | | | | maintenance fees and the program management |
| you look for? | | | | fees. This is a good parameter to compare 529 |
| Well, it is not quite straightforward to compare | | | | plans. Some plans, like that of the state of |
| 529 plans of different states. There are too many | | | | Wyoming have very high expenses. Even the |
| things to take care of. However, here are some | | | | plans of the stats of Alabama, Arizona, Maine and |
| guidelines that might help you to make the | | | | Tennessee are very expensive and hence not at |
| comparison. | | | | all good choices. |
| 1. Look into the tax breaks the plans are offering. | | | | 3. See what kind of investment options the plans |
| In fact, if your own state plan is giving you a tax | | | | will offer you. Most plans will give you at least |
| break, then it is not necessary to look into the | | | | three investment options, conservative and |
| plans of other states. Any limitations that exist in | | | | aggressive. Some of the plans, like that of the |
| your own plan will be overcome by the tax | | | | state of Virginia, provide as many as 21 American |
| deductions your plans offer. Currently, 31 out of | | | | funds, giving a very good choice for investors. |
| the 50 states in America provide tax deductions | | | | 4. There are two kinds of 529 plans - those that |
| on their 529 plans, along with the District of | | | | can be opened directly and those which require a |
| Columbia. These 31 states are: Arkansas, | | | | broker to open. The broker, or the state adviser, |
| Colorado, Connecticut, Georgia, Idaho, Illinois, | | | | will help in opening the plan and also give tips and |
| Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, | | | | pointers on making investments. But it must be |
| Michigan, Mississippi, Missouri, Montana, Nebraska, | | | | understood that broker plans are more expensive |
| New Mexico, New York, North Carolina, Ohio, | | | | than the plans that can be opened directly. |