Best ABLE Account Plan?

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Topic Author
startabatha
Posts: 255
Joined: Sun Sep 05, 2021 9:07 am

Best ABLE Account Plan?

Post by startabatha »

Has anyone recently compared ABLE Account plans for the lowest fees? I live in a state with no state income taxes, so the tax deduction does not factor in. Thank you!
Last edited by startabatha on Fri Jan 21, 2022 5:51 pm, edited 1 time in total.
funkysi
Posts: 25
Joined: Thu May 07, 2015 4:23 pm

Re: Best ABLE Account Plan?

Post by funkysi »

Following I am doing the same research

Thanks
Round
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Joined: Sat Jun 26, 2021 11:12 pm

Re: Best ABLE Account Plan?

Post by Round »

I am also interested in this. I live in a high tax state (NJ).
mrsbetsy
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Joined: Mon Jun 26, 2017 12:16 am

Re: Best ABLE Account Plan?

Post by mrsbetsy »

Clark Howard has a pretty good chart on his website here:

https://clark.com/education/able-accounts/

California, to my knowledge, is the only state that doesn't have a clawback for residents of the state.
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typical.investor
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Joined: Mon Jun 11, 2018 3:17 am

Re: Best ABLE Account Plan?

Post by typical.investor »

mrsbetsy wrote: Fri Jan 21, 2022 10:59 pm Clark Howard has a pretty good chart on his website here:

https://clark.com/education/able-accounts/

California, to my knowledge, is the only state that doesn't have a clawback for residents of the state.
That's a good list.

Note that most of the States with a 0.19% (low end fee) are only open to residents of that State. States open to non-residents seem a little more expensive.

The Ohio plan accepts some partner states as well, and accepts everyone but at higher fees. The Vermont plan says in that list that it accepts non-residents, but then closer reading on their site says no, but you can open a plan with Stable if you are not a Vermont Resident. That Stable plan is the same that Ohio sets you up with if you are not in one of the partner States, and it is at higher fees.

I was with the Ohio plan as a non-resident but switched to Florida when I became a resident there as the plan is cheaper.

So in general, if you are a resident of one of the cheaper States (that require you to be a resident) then that seems the way to go. I don't know of a cheap plan that accepts non-residents. Many States have a very low cost FDIC option but I am referring to investing. Pleas correct me if I am mistaken.


....ah will correct myself .... it seems like the cheaper options are only for FDIC insured accounts. Everything seems to be at least around 0.30% (program fee + investment fee) for investment.
mrsbetsy
Posts: 480
Joined: Mon Jun 26, 2017 12:16 am

Re: Best ABLE Account Plan?

Post by mrsbetsy »

I think it is very hard to tell how a plan will do state vs state because none of it is apples to apples.

We opened the CalAble account in 1/2019. There are 4 categories to choose:

Conservative
Moderate
Aggressive Growth
FDIC insured

We opted for 80% aggressive growth and 20% moderate for our 24 year old. This was quite a leap of faith since it is the state of California choosing and managing the investments.

To date, work/general contributions equal $22,300 and the account has earned $4500. Pretty darn good for tax free money and no clawback.

The monthly account maintenance fee is deducted at $3.08, so about $37 a year. I can live with that.

I am curious if other states have the same arrangement where the beneficiary is so limited in investment choices.
David_w
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Location: South Florida

Re: Best ABLE Account Plan?

Post by David_w »

Seems like they are all charging 9.5 times more minimum than the underlying funds. I live in Florida and just looked on their website. They charge 0.29% per fund for funds that have an expense ratio of 0.03% or 0.04%
Topic Author
startabatha
Posts: 255
Joined: Sun Sep 05, 2021 9:07 am

Re: Best ABLE Account Plan?

Post by startabatha »

I know, it’s terrible.
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