| If you are investing in a 529 state plan, it is easy to | | | | South Carolina, Utah, Vermont, Virginia, West Virginia |
| compare. The reason is that American citizens are | | | | and Wisconsin. |
| allowed to take any state plan, and then they can | | | | 2. Look for the expenses of the plans. The expenses |
| even switch between plans if they want to. That is | | | | you will have to bear when taking a plan will be the |
| the reason everyone wants to compare 529 plans | | | | enrollment fees, annual maintenance fees and the |
| before they actually open an account. So how do | | | | program management fees. This is a good parameter |
| you make the comparison? What do you look for? | | | | to compare 529 plans. Some plans, like that of the |
| Well, it is not quite straightforward to compare 529 | | | | state of Wyoming have very high expenses. Even |
| plans of different states. There are too many things | | | | the plans of the stats of Alabama, Arizona, Maine and |
| to take care of. However, here are some guidelines | | | | Tennessee are very expensive and hence not at all |
| that might help you to make the comparison. | | | | good choices. |
| 1. Look into the tax breaks the plans are offering. In | | | | 3. See what kind of investment options the plans will |
| fact, if your own state plan is giving you a tax break, | | | | offer you. Most plans will give you at least three |
| then it is not necessary to look into the plans of | | | | investment options, conservative and aggressive. |
| other states. Any limitations that exist in your own | | | | Some of the plans, like that of the state of Virginia, |
| plan will be overcome by the tax deductions your | | | | provide as many as 21 American funds, giving a very |
| plans offer. Currently, 31 out of the 50 states in | | | | good choice for investors. |
| America provide tax deductions on their 529 plans, | | | | 4. There are two kinds of 529 plans - those that can |
| along with the District of Columbia. These 31 states | | | | be opened directly and those which require a broker |
| are: Arkansas, Colorado, Connecticut, Georgia, Idaho, | | | | to open. The broker, or the state adviser, will help in |
| Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, | | | | opening the plan and also give tips and pointers on |
| Maryland, Michigan, Mississippi, Missouri, Montana, | | | | making investments. But it must be understood that |
| Nebraska, New Mexico, New York, North Carolina, | | | | broker plans are more expensive than the plans that |
| Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, | | | | can be opened directly. |