Best 529 plan

[sarah1122]

Hey all,

Wondering if any of you have recommendations for good 529 college savings plans? DS is 2 and we've got another on the way in May. Our state plan is pretty decent, but the fees are a bit high.

Just wondering what people are using.

[elbow]

The Utah plan is good. It has been written up in reviews as having lower fees. We like it. And you don't have to live in Utah.

[sunflower.mama]

Yes -we live in MA and use the Utah plan as well. Known as having lowest or one of lowest fee plans.

[sewaneecook]

Here are a couple websites I found helpful when I was searching for college savings plans:

http://clarkhoward.com/liveweb/shown.../7/76/215/381/

http://cashmoneylife.com/2009/03/11/...coverdell-esa/

We ended up going with our state plan (georgia) because there are some tax breaks and the fees aren't that bad.

[annethcz]

We use our state's plan. There are lots of places online to read reviews, I'd suggest doing a little googling. I'd also recommend looking into benefits of using your state's plan. Although the fees in our state aren't the lowest, we get a matching grant from the state every year, which more than makes up the difference.

[Smithie]

We use New York's plan, which is managed by Vanguard. We are very happy with it.

[K1329]

529 plans are typically counted as an asset, and can actually lower your eligibility for need-based scholarship monies and federal financial aid. However, this depends alot upon your individual situation - income, assets, etc. as well as what university your child is applying to. Might be worth doing some additional research, though. I wish I knew more about this particular topic, but, wanted to make sure you were aware of the possible pitfalls of 529s. Also, I'm just not sure, but, the initial savings and matches that are offered by some 529s might be enough to offset any reduced eligiblity.  If anyone knows more about this, please post!

[sunflower.mama]

Since no one has mentioned it, make sure your state doesn't allow a state income tax deduction for contributions.  Ours does not, which is why we use Utah, but some do.