Helping to Simplify 529 Investing
The universe of 529 plans is complex. Making financial decisions can be stressful. You just want straightforward information to help you pick “the right option” for your family. That’s why we created this website.
Use the table below to find quick information on the best option depending on what state you live in. If you want to meet with us 1:1 to discuss the options, please contact us. We are here to help.
Short Version (for those who just want a single recommendation):
If you happen to live in a state that offers an in-state resident benefit, it is often best to invest in your state’s plan (see table below).
For other folks, our single recommendation is the Vanguard S&P 500 Index fund within the State of Illinois’ Bright Start 529 Plan (expense ratio of 0.08%, tracks the S&P 500). You can create an account with the S&P 500 plan with BrightStart here.
Long Version (general guidance for those wanting to explore their options):
Here is our general guidance:
Pick a plan that has an expense ratio under 0.10%
Pick a plan that tracks a broad basket of US equities, such as the S&P 500, the Russell 3000, or the US Total Market.
There are many states that offer benefits to in-state residents. Depending on your tax situation, if the state you live in offers a tax break for investing in a 529 plan, it will often make more sense to invest in your state’s 529 plan to get those tax breaks.
LEGAL DISCLAIMER: We started this website to help others make sense of the complex world of 529 investments. You could lose money by investing in any 529 Plan. Please consider the investment objectives, risks, and charges and expenses before investing. You should consult your tax advisor, attorney, and/or financial advisor before investing.
| State | In-State Resident Benefit? | New Account Benefit? | Recommended Plan |
|---|---|---|---|
| Alabama | Yes | No | Alabama |
| Alaska | No | Yes | Alaska |
| Arizona | No | No | BrightStart |
| Arkansas | No | No | BrightStart |
| California | No | Yes | California |
| Colorado | Yes | Yes | Colorado |
| Connecticut | Yes | Yes | Connecticut |
| Delaware | No | No | BrightStart |
| Florida | No | No | Florida |
| Georgia | Yes | No | Georgia |
| Hawaii | No | No | BrightStart |
| Idaho | Yes | No | Idaho |
| Illinois | Yes | Yes | BrightStart |
| Indiana | Yes | No | Indiana |
| Iowa | Yes | No | Iowa |
| Kansas | No | No | BrightStart |
| Kentucky | No | No | BrightStart |
| Louisiana | Yes | No | Louisiana |
| Maine | No | No | BrightStart |
| Maryland | Yes | No | Maryland |
| Massachusetts | Yes | Yes | Massachusetts |
| Michigan | Yes | No | Michigan |
| Minnesota | No | No | BrightStart |
| Mississippi | Yes | No | Mississippi |
| Missouri | No | No | BrightStart |
| Montana | No | No | BrightStart |
| Nebraska | Yes | No | Nebraska |
| Nevada | No | No | BrightStart |
| New Hampshire | No | No | BrightStart |
| New Jersey | Yes | Yes | New Jersey |
| New Mexico | Yes | No | New Mexico |
| New York | Yes | No | New York |
| North Carolina | No | No | BrightStart |
| North Dakota | Yes | No | North Dakota |
| Ohio | Yes | No | Ohio |
| Oklahoma | Yes | No | Oklahoma |
| Oregon | Yes | No | Oregon |
| Pennsylvania | No | No | BrightStart |
| Rhode Island | Yes | No | Rhode Island |
| South Carolina | Yes | No | BrightStart |
| South Dakota | No | No | BrightStart |
| Tennessee | No | No | BrightStart |
| Texas | No | No | BrightStart |
| Utah | Yes | No | Utah |
| Vermont | Yes | No | Vermont |
| Virginia | Yes | No | Virginia |
| Washington | No | No | BrightStart |
| West Virginia | Yes | No | West Virginia |
| Wisconsin | Yes | No | Wisconsin |
| Wyoming | n/a | No | BrightStart |
| Washington DC | Yes | No | Washington DC |
NOTES:
In-State Resident Benefit indicates that this state offers a benefit that is only available to in-state residents. Typically, this benefit is a reduction in your state taxes.
New Account Benefit indicates that this state offers a benefit for opening a new 529 account. Typically, this benefit is a monetary deposit in the newly-created 529 account (e.g. $50). Note: these benefits may only be available to in-state residents.