529 plans indexed options

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States Without 529 Tax Deductions or Matches

The following states have 529 plans but do not offer any tax deductions or matching on contributions. Therefore, it is usually advisable to select the lowest cost plan (currently the Illinois 529)[1] for these states:

  • Alabama
  • Alaska
  • California
  • Delaware
  • Florida
  • Hawaii
  • Kentucky
  • Massachusetts
  • Nevada
  • New Hampshire
  • New Jersey
  • South Dakota
  • Tenness
  • Texas
  • Wyoming

Special Case

These states offer the same deduction in and out of state, so investors should usually choose the lowest cost plan (currently the Illinois 529) but they need to be sure to claim their deduction.

  • Kansas provides a deduction for both in-state and out-of-state 529's.
  • Maine provides a deduction for both in-state and out-of-state 529's.
  • Pennsylvania provides a deduction for both in-state and out-of-state 529's.

One can determine the breakeven point where using the Illinois 529 option becomes cheaper than a state plan providing tax deductible and/or matched 529 contributions by using the following factors.

  • 1. The tax savings amount (Deductible contribution x marginal state tax rate) + match.
  • 2. The cost differential between the plan and the Illinois 529 plan.
  • 3. Dividing (1) by (2) provides the capital accumulation point where the lower cost plan subsequently overtakes the tax benefit.


States offering Vanguard 529 Portfolios

The following states offer Vanguard Portfolios in their 529 plans. The links take one to the Savingforcollege summary pages, which contain links to the state 529 sites:


===1. Arkansas==: Program match on contributions:

Beginning in 2008, the program provides matching grants of up to $500 annually to eligible Arkansas families, based on household income level. For adjusted household income of $30,000 or less, the matching rate is $2 for each $1 contributed. For income of $30,001 to $60,000, the matching rate is $1 for each $1 contributed. Applications for matching grants are accepted each year between January 1 and April 30.

State tax deduction or credit for contributions:

Contributions to the Arkansas 529 plan of up to $5,000 ($10,000 for married taxpayers filing jointly) per year are deductible in computing Arkansas taxable income. Contribution deadline is December 31. For 2007, contributions made by check must be received on or before January 7, 2008.

Age-based investment options:

The Age-Based option is offered in three different risk levels (Aggressive, Moderate, and Conservative) each containing four or five portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the risk level selected and the number of years to expected enrollment, and later reassigned to more conservative portfolios as the beneficiary approaches college age

Static investment options:

Select among five multi-fund portfolios with varying risk tolerances and a money-market portfolio.

Expenses: 0.85%; maintenance fee: $20 annually (waived for Arkansas residents)


2. Colorado: Program match on contributions:

Dollar-for-dollar match of up to $500 in contributions for lower- to middle-income Colorado residents to accounts with an eligible beneficiary (a dependent under age 13 at the time of initial application); the match can extend for a maximum five years; matching grants for 2007 and future years are subject to continued funding by the sponsor

State tax deduction or credit for contributions:

Contributions to any of Colorado's 529 plans are fully deductible in computing Colorado taxable income, up to the contributor's adjusted gross income. Rollover contributions are not eligible for the deduction.

Age-based investment options:

The Age-Based option is offered in three different risk levels (Aggressive, Moderate, and Conservative) each containing four or five portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the risk level selected and the number of years to expected enrollment, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

Select among five multi-fund portfolios with varying risk tolerances and three individual-fund portfolios.

Expenses: 0.75%; maintenance fee: $20 annually, waived for Colorado and Wyoming residents


3. Hawaii: Program match on contributions:

None

State tax deduction or credit for contributions:

None

Age-based investment options:

The Age-Based Option contains four portfolios of underlying investment strategies. Contributions are placed into the portfolio corresponding to the beneficiary’s age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.b]

Static investment options:

Select among four multi-fund portfolios (Growth, Moderate Growth, Conservative Growth, and Income) and two individual-fund portfolios (Total Stock Market Index and Money Market).

Expenses: 0.71%; maintenance fee: $20 annually


4. Idaho: Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to the Idaho 529 plan of up to $4,000 per contributor per year are deductible in computing Idaho taxable income. Rollover contributions are not deductible. Contribution deadline is December 31.

Age-based investment options:

The Age-Based option is offered in three different risk levels (Aggressive, Moderate, and Conservative) each containing four or five portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the risk level selected and the number of years to expected enrollment, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static Investment options:

Select among five multi-fund portfolios, with varying risk tolerances, and a money-market portfolio.

Expenses: 0.75%, maintenance fee $20 annually unless either the account owner or beneficiary is a resident of Idaho.


5. Illinois: Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to any of Illinois' 529 plans of up to $10,000 per year for an individual taxpayer, and $20,000 per year for married taxpayers filing jointly, are deductible in computing Illinois taxable income. For a rollover contribution, only the principal portion is eligible for the deduction. Contribution deadline is December 31 postmark.

Age-based investment options:

Choose between the Active Age Based Portfolios and the Index Age Based Portfolios, each containing six portfolios of underlying equity, fixed income, and money market investments. Contributions are placed into the portfolio corresponding to the beneficiary’s age, and later reassigned to more conservative portfolios as the beneficiary approaches college age

Static investment options:

Select among four Active Portfolios and three Index Portfolios. The Active Portfolio choices are Equity, Balanced, Fixed Income, and Principal Protection Income (a guaranteed investment contract). The Index Portfolio choices are Equity, Balanced, and Fixed Income.

Expenses: 0.20% - 0.63%; $10 maintenance fee


6. Iowa: Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to any of Iowa's 529 plans of up to $2,595 per beneficiary are deductible in computing 2007 Iowa taxable income. The maximum deduction increases each year with inflation. Only contributions made by the account owner are deductible. Contribution deadline is December 31 postmark.

Age-based investment options:

The Age-Based option is offered in four different risk levels (Tracks A, B, C, and D) each containing four or five portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the risk level selected and the age of the beneficiary, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options;

Select among six multi-fund portfolios (Aggressive Growth, Growth, Moderate Growth, Conservative Growth, Income, and Conservative Income) and three individual-fund portfolios (Vanguard Total Bond Market Index Fund, Vanguard Institutional Index Fund and Vanguard Prime Money Market Fund)

Expenses: 0.52%


7. Kansas: Program match on contributions:

Under a 3-year pilot program beginning in 2006, the state will match on a dollar-for-dollar basis contributions above $100 and up to $600 per year by Kansas residents with household incomes below 200% of the federal poverty income level. The program is limited to 200 participants from each of Kansas’ 4 Congressional districts in 2007 and 300 participants from each of Kansas’ 4 Congressional districts in 2008.

State tax deduction or credit for contributions:

Contributions to any Kansas or non-Kansas state-sponsored 529 plan of up to $3,000 per beneficiary per year for an individual taxpayer, and $6,000 per beneficiary per year for a married couple filing jointly, are deductible in computing Kansas taxable income. Prior to 2007, the deduction was limited to contributions made only to a Kansas 529 plan. Rollover contributions are not deductible. Contribution deadline is December 31.

Age-based investment options:

The program offers an index age-based track that invests primarily in Vanguard index funds (American Century Money Market fund is the only non-Vanguard fund). Accounts will move through one or more of three age-based portfolios and eventually end in the Short-Term portfolio.

Static investment options:

Select among 14 options: four Vanguard index fund portfolios, a 100% Equity portfolio invested in American Century mutual funds, a Money Market portfolio invested in American Century funds, the six multi-fund portfolios used in the age-based tracks, and the LIVESTRONG™ 2015 and LIVESTRONG™ 2025 Portfolios. The two LIVESTRONG™ portfolios have a defined target year and as that date approaches, the asset mix of the underlying funds will change to a more conservative focus following a pre-set schedule. The underlying funds do not invest in any tobacco-related companies, and American Century Investments will make a contribution to the Lance Armstrong Foundation based on assets in the portfolios.

Expenses: 0.25% - 1.06%


8. Louisiana: Program match on contributions:

The state provides an earnings enhancement equal to 2% to 14% (depending on income) of a Louisiana participant's contributions when the account is used for qualifying expenses

State tax deduction or credit for contributions:

Contributions to the Louisiana 529 plan of up to $2,400 per account per year for an individual taxpayer, and $4,800 per beneficiary per year for married taxpayers filing jointly, are deductible in computing Louisiana taxable income. Any unused cap amount with an active account may be carried forward to increase the cap in subsequent tax years. Double deductions of up to $4,800 per year ($9,600 married file jointly) may be claimed for an account opened for an eligible needy, non-related beneficiary. Contribution deadline is December 31.

Age-based investment options:

The Age-Based Option contains four portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary’s age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

Select between the Louisiana Principal Protection Option (100% invested in the state-managed Fixed Earnings Fund), the Total Equity Option (100% invested in the Vanguard Total Stock Market Index Fund), the Equity Plus International Option (80% in Vanguard Total Stock Market Index Fund and 20% in Vanguard Total International Stock Index Fund), and three additional options offering a blend of the Fixed Earnings Fund and the Vanguard Total Stock Market Index Fund (Balanced Option, Equity-Plus Option, and Principal Preservation-Plus Option).

Expenses: 0.06% - 0.32%; None for Fixed Earnings Fund option


9. Missouri: Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to any of Missouri's 529 plans of up to $8,000 per contributor per year are deductible in computing Missouri taxable income. Only contributions made by the account owner are deductible. Rollover contributions are not deductible. Contribution deadline is December 31 postmark.

Age-based investment options:

The Age-Based option is offered in three different risk levels (Aggressive, Moderate, and Conservative) each containing five portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the risk level selected and the number of years to expected enrollment, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

Select among 8 multi-fund portfolios and 7 individual-fund portfolios. The Guaranteed Option managed by TIAA-CREF is retained for existing investments until June 2010.

Expenses: 0.62% - 1.51%


10. Nebraska: Program match on contributions:

Nebraska and non-Nebraska plan beneficiaries attending a Nebraska higher education institution are eligible to receive additional contributions from a privately-funded endowment fund

State tax deduction or credit for contributions:

Contributions to any of Nebraska's 529 plans of up to $5,000 per year for single taxpayers and married taxpayers filing jointly, and $2,500 per year for married taxpayers filing separately, are deductible in computing Nebraska taxable income. For years prior to 2007, the maximum deduction was lower. Only contributions made by the account owner are deductible. Contribution deadline is December 31 postmark.

Age-based investment options:

The Age-Based Portfolios option offers a choice among four different risk levels (Aggressive, Growth, Balanced, and Conservative) each containing five portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the selected risk level and beneficiary’s age, and later reassigned to more conservative portfolios as the beneficiary approaches college age. Portfolios are a mixture of Vanguard Index Funds and other providers' active funds.

Static investment options:

Select among six multi-fund Target portfolios with varying risk tolerances and 21 individual-fund portfolios.

Expenses: 0.65% - 1.64%; maintenance fee $5 quarterly. There is a one-time fee credit of $10 on accounts enrolled in an automatic investment plan of $25 or more per month.


11. Nevada: Program match on contributions:

None

State tax deduction or credit for contributions:

Not applicable. Nevada does not have a personal income tax

Age-based investment options:

The Age-Based Option offers a choice among three different risk levels (Aggressive, Moderate, or Conservative) each containing five portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the selected risk level and number of years to expected enrollment, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

Select among five multi-fund portfolios (Aggressive Growth, Growth, Moderate Growth, Conservative Growth, and Income) and 14 individual-fund portfolios.

Expenses: 0.50% - 0.70%; maintenance fee: $20 annually on accounts below $3,000.


12. New York: Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to any of New York's 529 plans of up to $5,000 per year for an individual taxpayer, and $10,000 per year for married taxpayers filing jointly, are deductible in computing New York taxable income. Only contributions made by the account owner, or if filing jointly, by the account owner's spouse, are deductible. Contribution deadline is December 31 postmark.

Age-based investment options:

The Age-Based Option offers a choice among three different risk levels (Aggressive, Moderate, or Conservative) each containing five portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the selected risk level and beneficiary’s age, and later reassigned to more conservative portfolios as the beneficiary approaches college ag

Static investment options:

Select among four multi-fund portfolios (Growth, Moderate Growth, Conservative Growth, and Income), seven individual index-fund portfolios, and the Vanguard Short-Term Reserves Account.

Expenses: 0.55%


13. North Carolina: Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to the North Carolina 529 plan of up to $2,500 per year for an individual taxpayer, and $5,000 per year for married taxpayers filing a joint return, are deductible in computing North Carolina taxable income. For years prior to 2007, the maximum deduction was lower. Beginning in 2012, income limitations are imposed.

Age-based investment options:

The V Fund Age-Based Option offers a choice among three different risk levels (Aggressive, Moderate, or Conservative), each containing five portfolios of underlying Vanguard mutual funds. Contributions are placed into the portfolio corresponding to the selected risk level and number of years to expected enrollment, and later reassigned to more conservative portfolios until the beneficiary reaches age

Static investment options:

Vanguard multifund portfolios are only available in age-based portfolios

Expenses: 0.30% - 1.40%


14. North Dakota:Program match on contributions:

Beginning in July 2007, the program offers a one-time match up to $300 in contributions by North Dakota participants with incomes below $20,000 (single) or $40,000 (joint).

State tax deduction or credit for contributions:

Beginning with the 2007 tax year, contributions to the North Dakota 529 plan of up to $5,000 per year for an individual taxpayer, and $10,000 for a married couple filing jointly, are deductible in computing North Dakota taxable income. Contribution deadline is December 31

Age-based investment options:

There are three age-based options (Conservative, Moderate, and Aggessive), each containing up to five investment portfolios. Contributions are placed into the portfolio corresponding to the selected option and age of the beneficiary, and later reassigned to more conservative portfolios as the withdrawal date draws nearer.

Static investment options:

Six asset allocation portfolios are offered. The Aggressive Growth, Growth, Moderate Growth, and Conservative Growth portfolios invest in Vanguard stock and bond index funds. The Income Portfolio invests in a Vanguard bond index fund, inflation-protected securities fund, and a money market fund. The Money Market Portfolio invests 100% in the Vanguard Prime Money Market Fund.

Expenses: 0.85%; maintenance fee:$20 annually (waived for North Dakota residents)


15. Ohio: Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to any of Ohio's 529 plans of up to $2,000 per beneficiary per year are deductible in computing Ohio taxable income, with an unlimited carryforward of excess contributions. Contribution deadline is December 31.

Age-based investment options:

Both the Putnam Age-Based Option and the Vanguard Age-Based Option offer a choice among three different risk levels (Aggressive, Moderate, and Conservative). Under the Putnam Age-Based Option, contributions are allocated among eight mutual funds based on the selected risk level and the age of the beneficiary, and a reallocation occurs every three months until the beneficiary reaches age 21. Under the Vanguard Age-Based Option, contributions are placed into one of five mutual-fund portfolios corresponding to the selected risk level and age of the beneficiary, and reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

The Putnam investment options consist of three multi-fund portfolios (Aggressive Growth, Growth, and Balanced), a stable value investment, and 12 individual-fund portfolios. The Vanguard investment options consist of four multi-fund portfolios and seven individual-fund portfolios. The Fifth Third Bank options consist of certificates of deposit and a savings account.

Expenses: 0.23% - 1.32%; None for Fifth Third options


16. Oregon: Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to any of Oregon's 529 plans in 2007 of up to $2,000 for an individual taxpayer and for married taxpayers filing jointly, and $1,000 for married taxpayers filing separately, are deductible in computing Oregon taxable income, with a four-year carryforward of excess contributions. Beginning in 2008, the maximum annual deduction is $4,000 for married taxpayers filing jointly and $2,000 for all other taxpayers, and the limits are to be adjusted annually for inflation. Contribution deadline is April 15 of the following year.

Age-based investment options:

No Vanguard Option

Static investment options:

Select among six multi-fund portfolios (Aggressive, Moderate, Balanced, Conservative, Ultra Conservative, and 100% Equity), and five individual-fund portfolios.

Expenses: 0.21% - 0.81%; maintenance fee: $20 annually per Vanguard Portfolio (waived for Oregon residents)


17. Pennsylvania: Program match on contributions:

Match available for Pennsylvania low-income families (200% of the federal poverty level) participating in the Family Savings Account Program offered through the Pennsylvania Department of Community and Economic Development

State tax deduction or credit for contributions:

Contributions to any Pennsylvania or non-Pennsylvania 529 plan of up to $12,000 per beneficiary per year are deductible in computing Pennsylvania taxable income. Spouses filing jointly must each have at least $12,000 in income to claim the maximum $24,000 per-beneficiary deduction. Rollovers from another 529 plan or from qualified U.S. savings bonds are not eligible for the deduction.

Age-based investment options:

The Age-Based Options offer a choice between three risk levels (Conservative, Moderate, and Aggressive) each containing five portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary’s age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

Select among six multi-fund portfolios (Aggressive Growth, Growth, Moderate Growth, Conservative Growth, Income, and Conservative Income) and four individual-fund portfolios (Total Stock Market Index, Social Index, Inflation Protected Securities, and Money Market).

Expenses: 0.70% - 0.75%


18. Rhode Island: Program match on contributions:

The program will annually match up to $500 in contributions from low- and moderate-income Rhode Island residents to an account opened before the beneficiary reaches age 11. The match can extend for a maximum five years. For 2007 contributions, the match is $1-for-$1 for a family with adjusted gross income of $65,001 to $80,000, and $2-for-$1 for a family with adjusted gross income of $65,000 or less. The application to match 2007 contributions must be submitted by April 30, 2008.

State tax deduction or credit for contributions:

Contributions to the Rhode Island 529 plan of up to $500 per year for an individual taxpayer, and $1,000 per year for married taxpayers filing jointly, are deductible in computing Rhode Island taxable income, with an unlimited carryforward of excess contributions. Only contributions made by the account owner are deductible. Rollovers from another 529 plan are not deductible. Contribution deadline is December 31.

Age-based investment options:

No vanguard fund option

Static investment options:

Select among three multi-fund portfolios (Appreciation, Balanced, and Preservation), a stable value portfolio (Principal-Protection Income Portfolio), and ten individual-fund portfolios. A dollar-cost averaging option provides for automatic monthly reallocations between any of the portfolios.[One Vanguard fund available: Total Stock Market Index]

Expenses: 0.39% - 1.53%


19. Utah: Program match on contributions:

Pilot program matches contributions of low-income Utah participants

State tax deduction or credit for contributions:

In 2008, contributions to the Utah 529 plan of up to $1,650 per beneficiary for single taxpayers, and $3,300 per beneficiary for married taxpayers filing jointly, are deductible in computing Utah taxable income for those selecting the "traditional" tax method. For those selecting the "single-rate" method, a 5.00% tax credit may be claimed on those contributions. The deduction/credit limits are increased each year for inflation. Contributions to an account established after a beneficiary reaches age 19 are not eligible. Contributions from a non-owner are deductible or creditable by the account owner and not by the non-owner/contributor. Contribution deadline is receipt by the last business day of the year.

Age-based investment options:

Five age-based options, with different underlying investments and risk levels, are offered. Contributions are allocated among the underlying investments according to the option selected and the age of the beneficiary, and are reallocated to become more conservative as the beneficiary approaches college age.

Static investment options;

Select among the State Treasurer’s Investment Fund, two individual-fund index portfolios, and an equity-index, multi-fund portfolio

Expenses: 0.25% - 0.38%; maintenance fee: $4 per $1,000 of account balance up to a maximum of $20 annually (waived for Utah residents); charged quarterly.


20. Virginia: Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to any of Virginia's 529 plans of up to $2,000 (increasing to $4,000 in 2009) per account per year are deductible in computing Virginia taxable income, with an unlimited carryforward of excess contributions. Contributions are fully deductible in the year of contribution for taxapayers at least 70 years of age. Contributions from a non-owner are deductible by the account owner and not by the non-owner/contributor. Contribution deadline is receipt by the last business day of the year based on agency calendar (not postmark date).

Age-based investment options:

The Age-based Evolving Portfolios option contains seven portfolios of underlying mutual funds and separately-managed investments. Contributions may be invested in any of the portfolios. The portfolios automatically shift to a more conservative investment allocation over time. The portfolios are a mixture of Vanguard Index funds and other providers' active funds.

Static investment options:

Select among nine portfolios each of which invests in a different Vanguard mutual fund

Expenses: 0.31% - 0.57%


21. West Virginia: Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to any of West Virginia's 529 plans are fully deductible in computing West Virginia taxable income.

Age-based investment options:

No Vanguard funds available

Static investment options:

Select among five multi-fund portfolios (Aggressive Growth, Growth, Balanced, Conservative Balanced, and Conservative Bond), the SMART529 Stable Value portfolio and the SMART529 500 Index Fund.[Includes a stand alone Vanguard S&P 500 Index fund]

Expenses: 0.39% - 1.03%


22. Wisconsin: Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to any of Wisconsin's 529 plans of up to $3,000 per beneficiary per tax return are deductible in computing Wisconsin taxable income. Only contributions to an account naming the contributor, the contributor's dependent child, or the contributor's grandchild, great-grandchild, nephew, or niece as beneficiary are eligible for the deduction. Contribution deadline is December 31.

Age-based investment options:

No Vanguard funds available

Static investment options:

Select among five multi-fund portfolios (Aggressive, Moderate, Balanced, Bond, and Wisconsin Select) and five individual-fund portfolios. Vanguard funds are limited to the Total Market Index and the Wellington Fund.

Expenses: 0.69% - 1.23% maintenance fee: $20 annually on accounts with less than $25,000, waived for Wisconsin residents and for automatic deposits


23. Wyoming

This 529 college savings program is authorized by the state of Wyoming in affiliation with CollegeInvest Colorado. It features age-based and static portfolio options utilizing Vanguard mutual funds, and accounts can be linked to the Upromise Rewards Service.

Program match on contributions:

None

State tax deduction or credit for contributions:

Not applicable. Wyoming does not have a personal income tax.

Age-based investment options:

The Age-Based option is offered in three different risk levels (Aggressive, Moderate, and Conservative) each containing four or five portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the risk level selected and the number of years to expected enrollment, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

Select among five multi-fund portfolios with varying risk tolerances and three individual-fund portfolios.

Expenses: 0.75%;maintenance fee: $20 annually, waived for Colorado and Wyoming residents


Other States offering non-Vanguard Indexed Options in 529 plans


The following states offer 529 plans run by TIAA-CREF:


Connecticut

Georgia

Kentucky

Michigan

Minnesota

Mississippi

Oklahoma

Vermont



Additional states offering indexed portfolios


Arizona (Fidelity)

Massachusetts (Fidelity)

South Carolina (Columbia)

West Virginia (DFA)



Collegesure 529 Tuition Indexed Programs


Information on collegesure 529 plans:


1. Arizona

The interest rate on the FDIC-insured CDs available through this 529 plan is pegged to a private-college tuition index, less a 1.5% margin, not to fall below 2% annually. (If average private-college tuition increases by 6% in a year, the yield on the CD is 4.5%.)

Program match on contributions:

None

State tax deduction or credit for contributions:

In 2007, contributions to 529 plans are not deductible in computing Arizona taxable income. In 2008 through 2012, contributions to Arizona and non-Arizona 529 plans of up to $750 per year for an individual taxpayer, and $1,500 per year for a married couple filing jointly, are deductible in computing Arizona taxable income.


2. Montana

Two FDIC-insured options are offered in this 529 plan. The interest rate on the CollegeSure CD is pegged to a private-college tuition index, less a 1.5% margin, not to fall below 2% annually. (If average private-college tuition increases by 6% in a year, the yield on the CD is 4.5%.) The InvestorSure CD has a five-year maturity, and earns interest at a rate pegged to a percentage (between 85% and 100%) of the increase in the S&P 500 Index.

Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to any of Montana's 529 plans of up to $3,000 per year for an individual taxpayer, and $6,000 per year for married taxpayers filing jointly, are deductible in computing Montana taxable income. Only contributions made by the account owner, the account owner's spouse, or the account owner's custodian/parent are deductible. Contribution deadline is December 31 postmark.


Additional Links

College Tuition: Historical Cost Inflation

College Savings Bank

Saving for College

College Savings Plan Network

Vanguard College Savings Center

College Board

Information for Financial Aid Professonals (IFAP) Library




Footnotes

  1. The Illinois plan consists of balanced age-based portfolios. Investors wishing to use individual fund selections for asset allocations (and having no tax preferences should consider the lowest cost 529 plan offering individual portfolios. Currently, Ohio offers the lowest cost individual portfolios. ▲