I hope you are having a wonderful day.

My daughter is three and I wanted to plan some money for her college although I fully intend on her doing it herself. This would be a surprise.

From my research, New York's' 529 plan looked like the best.

What plans are you using?

we have accounts with the NC 529 - it was good when they were tax deductible for NC state taxes... that tax break was eliminated a few years ago.

also with T. Rowe Price

I think the main thing is to check the fee schedule and get started.

The results after 15 years may surprise you pleasantly. Even if you only save 25-50% of the cost - that puts a nice dent in the bill going into Freshman year not worrying about where the $$$ is coming from Day One.

Good luck-

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When I started my kids' plans in 2009, Utah seemed to have lowest admin cost and offered Vanguard Institutional Funds. Again, lowest cost.
Vanguard S&P 500 Index Fund.

I have a lot of experience using 529 plans. I have used them to put 3 kids in college. I have used the State of Texas 529 plan.

My experience with the Texas 529 plan has been frustrating at times. My 529 plan still uses paper checks. Often times, the universities don't post the final bill amounts until a few days before they are due. Once you have the dollar amount, you have to contact the 529 administrator to issue a paper check. I have had the paper check take 2 weeks before it reaches the university. Very frustrating, the proverbial check in the mail. I have had to cover the funds myself, then cancel the check to the university and then order a new check made out to me to reimburse myself.

And believe me, if the university does not have their money by the cut off date, those classes are dropped like a hot potato.

Make sure your 529 plan has electronic transfer of funds.

my529.org (formerly Utah Educational Savings Plan) is very low cost and has a lot of set options plus custom options. It is also one of three rated as gold from Morningstar. All that being said check plans in your own state first for state tax benefits.

quote:

Originally posted by Angus the Kid:
My experience with the Texas 529 plan has been frustrating at times. My 529 plan still uses paper checks. Often times, the universities don't post the final bill amounts until a few days before they are due. Once you have the dollar amount, you have to contact the 529 administrator to issue a paper check. I have had the paper check take 2 weeks before it reaches the university. Very frustrating, the proverbial check in the mail. I have had to cover the funds myself, then cancel the check to the university and then order a new check made out to me to reimburse myself.
....
Make sure your 529 plan has electronic transfer of funds.

interesting. we have had better luck.

in the past we have usually paid the bill onto a CC to collect the miles then requested a check to reimburse ourselves the exact amount of the charge. usually get the check within a couple of days (T. Rowe Price plan most recently).

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Don't 529 plans lock you into a State? What happens when the child desires a college from a different State? You change jobs/careers and move to a different State etc.?

quote:

Originally posted by ffips:
Don't 529 plans lock you into a State? What happens when the child desires a college from a different State? You change jobs/careers and move to a different State etc.?

this is a common misconception. they are 'sponsored' by a state but you can use the funds for any college anywhere.

NOT to be confused with 'pre-paid tuition plans' offered by a specific state. but even those will typically 'refund' you the money if the kid decides to go elsewhere.

there really is no downside to a 529 provided they are not detracting from your appropriate level of retirement saving.

good info here:

https://www.sec.gov/reportspub...pubsintro529htm.html

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Avoid it altogether.

quote:

Originally posted by trapper189:
When I started my kids' plans in 2009, Utah seemed to have lowest admin cost and offered Vanguard Institutional Funds. Again, lowest cost.
Vanguard S&P 500 Index Fund.

This ^^^

We started ours in 2004, and at that time the Utah plan was among the best in the country. I've been extraordinarily pleased with that decision.

quote:

Originally posted by ffips:
Don't 529 plans lock you into a State? What happens when the child desires a college from a different State? You change jobs/careers and move to a different State etc.?

No, as stated above.

However, they do lock you into higher education -- so if your kid decides not to go to college, or if you save more than they use, you're looking at healthy penalties to withdraw the money.

Thanks for the info.

You may want to determine if your states plan provides a state income tax deduction for contributions.

quote:

Originally posted by hoppes no9:

quote:

Originally posted by trapper189:
When I started my kids' plans in 2009, Utah seemed to have lowest admin cost and offered Vanguard Institutional Funds. Again, lowest cost.
Vanguard S&P 500 Index Fund.

This ^^^

We started ours in 2004, and at that time the Utah plan was among the best in the country. I've been extraordinarily pleased with that decision.

What is the plan named? The Utah plan?

quote:

Originally posted by heisrizn:

What is the plan named? The Utah plan?

Bytes provided that in his post above:

quote:

Originally posted by Bytes:
my529.org (formerly Utah Educational Savings Plan) is very low cost and has a lot of set options plus custom options. It is also one of three rated as gold from Morningstar. All that being said check plans in your own state first for state tax benefits.

quote:

Originally posted by hoppes no9:

No, as stated above.

However, they do lock you into higher education -- so if your kid decides not to go to college, or if you save more than they use, you're looking at healthy penalties to withdraw the money.

I believe the law was changed in December to allow federal tax free withdrawals up to $10,000 for K-12 expenses as well. Private, religious, doesn't matter. Also, what one child doesn't use can be used for other siblings, the child's children, or even the child's parents just by changing the beneficiary. In other words, if one or more of my kids don't use it, I can use it for myself and go back to school penalty and tax free. If a kid gets a scholarship, you can withdraw an equivalent amount penalty free, but you'll have to pay income taxes.

quote:

Originally posted by SIG4EVA:
I hope you are having a wonderful day.

My daughter is three and I wanted to plan some money for her college although I fully intend on her doing it herself. This would be a surprise.

From my research, New York's' 529 plan looked like the best.

What plans are you using?

What makes you favor the NY plan over NC plan? Does NC have a State Income tax, and are contributions to that plan by NC residents tax deductible? Many tates offer an income tax deduction to reside t contributing to a plan in their home state.

quote:

Originally posted by hoppes no9:

quote:

Originally posted by ffips:
Don't 529 plans lock you into a State? What happens when the child desires a college from a different State? You change jobs/careers and move to a different State etc.?

No, as stated above.

However, they do lock you into higher education -- so if your kid decides not to go to college, or if you save more than they use, you're looking at healthy penalties to withdraw the money.

Not true. 529 rules allow for other education spending not just college.

https://www.irs.gov/newsroom/5...uestions-and-answers

Q. What is an eligible educational institution?
A. An eligible educational institution is generally any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education. Note that, beginning in 2018, the term “qualified higher education expense” includes expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.

Q. Can I make withdrawals from my 529 plan for tuition at elementary or secondary schools?
A. Yes. As of 2018, the term “qualified higher education expense” includes up to $10,000 in annual expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.

Q. Can I make withdrawals from my 529 plan for the costs of computer technology or equipment?
A. A qualified, nontaxable distribution from a 529 plan includes the cost of the purchase of any computer technology, related equipment and/or related services such as Internet access. The technology, equipment or services qualify if they are used by the beneficiary of the plan and the beneficiary's family during any of the years the beneficiary is enrolled at an eligible educational institution.

https://www.usnews.com/educati...plan-college-savings

Compare at savingforcollege.com . I’ve use the WI plan since it’s State deductible up to certain level.

I’ve had Vanguard funds and low fees with the ‘no advisor’ option. State deductibility can be a big deal, depending on how much, what funds, and fees involved.

quote:

Originally posted by Angus the Kid:
My 529 plan still uses paper checks. Often times, the universities don't post the final bill amounts until a few days before they are due. Once you have the dollar amount, you have to contact the 529 administrator to issue a paper check. I have had the paper check take 2 weeks before it reaches the university. Very frustrating, the proverbial check in the mail. I have had to cover the funds myself, then cancel the check to the university and then order a new check made out to me to reimburse myself.

And believe me, if the university does not have their money by the cut off date, those classes are dropped like a hot potato.

Make sure your 529 plan has electronic transfer of funds.

I can't echo this loudly enough. Every quarter it's the same frustrating, nerve-wracking game. This quarter, in fact, the checks were lost and I had to have a stop payment put on them, the funds swept back in and out of hte 529 program, and the checks reissued and overnighted. Just made it with a day to spare.

And yet I'm told this is the way it has to work, no electronic payments possible.

I use the Ohio College Advantage Plan. It's typically one of the highest ranked plans nationally and it's tax deductible for me.