Every year, a number of states make changes to their 529 plans. It’s hard to keep up with all of these changes, but I do an annual review of the programs to update some of the most common changes:
-Increases to maximum contribution limits
-Changes in in-state tax benefits and deductions
This year there are some good changes and bad changes. Although many states have increased tax deductions, some have dropped matching grants as they struggle with budget deficits.
You should double check your state here to look for any changes:
Also, some states do better than others at keeping their informational web sites up-to-date. If you notice any errors in my updated numbers, please let me know.
Total assets in Utah’s 529 plans — Utah Educational Savings Plan (UESP) — have topped $3 billion, the organization announced. This is thanks in part to rebounding stock markets, but also a 12.53% increase in accounts last year.
One reason for Utah’s popularity is its lost overall costs. I personally have my daughter’s 529 plan with Utah.
A number of 529 plans offer upfront tax breaks to residents who invest in their own states’ plans. Although some states give you until you file your state tax return to make contributions for 2009, many require you to send your deposit by December 31.
To find out your states’ rules, go to our state 529 plan page, find your state, and click through to the relevant plan.
Looks like Washington is looking into a few enhancements of 529 plans, based on the findings from a report from the U.S. Treasury. From TheStreet.com:
Congress and the White House are working on new proposals that would keep college 529 plan expenses down, widen the use of such funds and possibly even allow parents to do what was once unthinkable – cross state lines to get the best deals, while still getting favorable state tax benefits.
Utah governor Gary Herbert signed a declaration officially proclaiming September as College Savings Month in the State of Utah. The Utah Educational Savings Plan (UESP), Utah’s 529 college savings program, is encouraging parents, grandparents and other family members to prepare and save for a child’s higher education.
Read about Utah’s 529 savings plan here.