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.
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.
Morningstar is releasing its ranking of top 529 plans, based on fees, investment quality, asset allocation and flexibility.
Here are its picks for best 529 plans
Utah Education Savings Plan Trust
Virginia Education Savings Trust
The worst 529 plans were ones that often had too aggressive of age-based funds that lost significant value during the stock market crash.
The Wall Street Journal is reporting that the Obama family invested $240,000 into their kids 529 plans. They took advantage of the ability to max out 5 years worth of contributions without gift tax penalties. The money was invested in Illinois’ Bright Directions College Savings Program
Today we’re going to take a look at 529 plan options in New York.
Both of New York’s 529 plans are open to residents of all states. However, New York offers generous tax benefits to its own residents. NY residents can deduct up to $5,000 ($10,000 for couples) on their state income taxes be contributing to a NY 529 plan.
New York offers a direct plan and one sold through advisors. The direct plan has minimum deposits of only $15 when you set up a payroll deduction. The advisor program has higher minimums; please contact an advisor for assistance.
New York also recently liberalized the the rules for who can contribute to a 529 plan. Now relatives, employers, and friends can contribute to a New York 529 plan.
Click here for more information about New York 529 plans.