529 Plans

529 plan  offer tax-free withdrawals when the funds are used to pay for qualified higher education expenses. In general, this includes costs of attending an eligible post-secondary educational institution. Starting January 1, 2018, this definition is expanded to include up to $10K per year in tuition for K-12 schools.

There are two types of 529 plans: prepaid tution plans and 529 college saving plans . All fifty states and the District of Columbia sponsor at least one type of 529 plan. In addition, a group of private colleges and universities sponsor a prepaid tuition plan.

All 529 college savings plans are sponsored by state governments, but only a few have residency requirements for the college saver and/or beneficiary. State governments do not guarantee investments in college savings plans. College savings plan investments in mutual funds and ETFs are not federally guaranteed, but investments in some principal-protected bank products may be insured by the FDIC. Similar to most investments, investments in college savings plans may not make any money and could lose some or all of the money invested.

StatePlan nameIn-state Tax benefit
AlabamaCollege Counts 529 planYes
AlaskaUniversity of Alaska College Savings PlanNo
ArizonaArizona Family College Savings ProgramAny state’s plan
ArkansasGIFT College Investing planYes
CaliforniaScholarShare College Savings PlanNo
ColoradoCollegeInvest Direct Portfolio College Savings planYes
ConnecticutConnecticut Higher Education TrustYes
DelawareDelaware College Investment PlanNo
District of ColumbiaDC 529 College Savings ProgramYes
FloridaFlorida 529 Savings PlanNo
GeorgiaPath2College 529 planYes
HawaiiHawaii’s College Savings ProgramNo
IdahoIdaho College Savings ProgramYes
IllinoisBright Start College Savings ProgramYes
IndianaCollegeChoice 529 Direct Savings planYes
IowaCollege Savings Iowa 529 planYes
KansasLearning Quest 529 Education Savings ProgramAny state’s plan
KentuckyKentucky Education Savings Plan TrustNo
LouisianaSTART Savings ProgramYes
MaineNextGen College Investing PlanAny state’s plan
MarylandCollege Savings plans of MarylandYes
MassachusettsMassachusetts U.Fund College Investing PlanNo
MichiganMichigan Education Savings ProgramYes
MinnesotaMinnesota College Savings PlanNo
MississippiMississippi Affordable College Savings ProgramYes
MissouriMOST 529 College Savings PlanAny state’s plan
MontanaMontana Family Education Savings ProgramAny state’s plan
NebraskaNebraska Education Savings Trust – Direct College Savings planYes
NevadaNevada College Savings PlanNo
New HampshireUNIQUE College Investing PlanNo
New JerseyNJ BEST College Savings PlanNo
New MexicoThe Education planYes
New YorkNew York’s 529 College Savings ProgramYes
North CarolinaCollege Foundation of North CarolinaNo
North DakotaCollege SAVEYes
OhioOhio CollegeAdvantage 529 Savings planYes
OklahomaOklahoma College Savings planYes
OregonOregon College Savings planYes
PennsylvaniaPA 529Any state’s plan
Rhode IslandCollegeBound FundYes
South CarolinaFuture Scholar 529 College Savings planYes
South DakotaCollege Access 529No
TennesseeTN Stars College Savings 529 ProgramNo
TexasTexas College Savings PlanNo
UtahUtah Educational Savings plan (UESP)Yes
VermontVermont Higher Education Investment planYes
VirginiaVirginia529 inVESTYes
West VirginiaSMART529 WV Direct College Savings planYes
WisconsinEdvest College Savings planYes

Source:CSPN (College Savings Plan Network)

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