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