529 Plans

You can invest in a  529 plans for your children, grandchildren, and even yourself. They  are an excellent tax-advantaged way to invest money for college education.  The tax advantages are usually a deduction from your state taxes.

1. 1. Tax-deferred growth: Earnings grow federal (and often state) tax-free, allowing your account to potentially accumulate faster than in taxable savings accounts.

1. 1. Tax-free withdrawals: Money that’s used for qualified higher education expenses is federal (and often state) tax-free. Effective January 1, 2018, you can use up to $10,000 per calendar year per beneficiary in 529 assets to help pay for tuition at an elementary or secondary public, private or religious school. State tax treatment may vary.

1. 1. No federal gift tax: You can make annual contributions of up to $15,000 ($30,000 for couples) without paying a federal gift tax. You can also take advantage of a five-year gifting provision that allows you to make five years’ worth of gifts all at once, as long as no additional gifts are made to the beneficiary in the five-year period

1. 1. Estate tax deduction: Contributions are considered completed gifts and are removed from your taxable estate for estate tax purposes. Learn more about including 529 plans in your estate planning strategies.

1. 1. High contribution limits: Many 529 plans offer maximum lifetime contribution limits of $250,000 or more. NextGen offers a higher maximum lifetime contribution limit of $475,000

1. 1. Minimal impact on financial aid: Assets in a 529 plan are treated more favorably for financial aid purposes than assets in a taxable account, such as a UGMA/UTMA account

1. Broad range of qualified expenses: Money can be used to cover tuition, room and board, books, computers and other supplies at any accredited U.S. college or university and some foreign schools. Also, effective January 1, 2018, you can take a federally tax-free distribution of up to $10,000 per calendar year per beneficiary to help pay for tuition at an elementary or secondary public, private or religious school. State tax treatment may vary.

Below is a list of all the 529 college savings plans, by state, in alphabetical order.529 plans – by state:

Alaska: The University of Alaska College Savings Plan http://www.uacollegesavings.com
Alabama: College Counts 529 Fund https://www.collegecounts529.com/
Alaska: The University of Alaska College Savings Plan http://www.uacollegesavings.com
Arizona: AZ529 http://www.az529.gov
Arkansas: AR 529 College Investing Plan https://www.arkansas529.org/
California: ScholarShare 529 https://www.scholarshare.com/
Colorado: CollegeInvest https://www.collegeinvest.org/
Connecticut: CHET 529 College Savings Plan https://www.aboutchet.com/
Delaware: Delaware College Investment Plan https://www.fidelity.com/go/529-delaware/overview
Florida: Florida 529 Savings Plan http://www.myfloridaprepaid.com/what-we-offer/529-savings-plan/
Georgia: Path2College 529 Plan https://www.path2college529.com/
Hawaii: HI 529 https://www.hi529.com
Idaho: ideal https://www.idsaves.org
Illinois: CollegeIllinois! 529 Plan http://www.collegeillinois.org
Indiana: CollegeChoice 529 https://www.collegechoicedirect.com/
Iowa: College Savings Iowa 529 https://www.collegesavingsiowa.com/
Kansas: Learning Quest 529 Educational Savings Plan https://www.learningquest.com/
Kentucky: Kentucky Education Savings Plan Trust https://www.kysaves.com/
Louisiana: START Saving for College http://www.startsaving.la.gov
Maine: NextGen http://www.nextgenforme.com/
Maryland: Maryland 529 Plan https://maryland529.com/
Massachusetts: mefa UFUND 529 https://www.fidelity.com/go/529-Massachusetts/overview
Michigan: Michigan Education Savings Program https://www.misaves.com/
Minnesota: College Savings Plan https://www.mnsaves.org
Mississippi: College Savings Mississippi http://www.treasurerlynnfitch.ms.gov/collegesavingsmississippi/Pages/default.aspx
Missouri: MOST 529 https://www.missourimost.org/
Montana: Achieve Montana https://achievemontana.com/
Nebraska: NEST 529 College Savings https://www.nest529direct.com/home.html
Nevada: SSGA UPromise 529 https://www.ssga.upromise529.com/
New Hampshire: The Unique College Investing Plan https://www.fidelity.com/go/529-New-Hampshire/overview
New Jersey: NJ Best 529 Plan https://www.njbest.com/
New Mexico: The Education Plan https://www.theeducationplan.com
New York: NY’s 529 Plan https://www.nysaves.org/
North Carolina: The NC 529 Plan http://nc529.org/
North Dakota: College Save Picture the Future: https://www.collegesave4u.com
Ohio: College Advantage https://www.collegeadvantage.com/
Oklahoma: Oklahoma 529 College Savings Plan https://www.ok4saving.org
Oregon: Oregon College Savings Plan https://www.oregoncollegesavings.com
Pennsylvania: PA529 http://www.pa529.com/
Rhode Island: CollegeBound Saver https://www.collegeboundsaver.com/
South Carolina: Future Scholar https://futurescholar.com/
South Dakota: CollegeAccess 529 Plan https://www.collegeaccess529.com/
Tennessee: TNStars College Savings 529 Program http://www.tnstars.com/
Texas: Texas College Savings Plan https://www.texascollegesavings.com/
Utah: Utah Educational Savings Plan https://uesp.org/
Vermont: Vermont Higher Education Investment Plan https://vheip.org/
Virginia: Virginia 529 https://www.virginia529.com/
Washington: No plan
West Virginia: Smart529 College Savings Plan http://www.smart529.com/
Wisconsin: Edvest https://www.edvest.com/
Wyoming: No plan