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529 PLANS
Checklist for the Scholar's Edge
The Savingforcollege.com 529 Selection Checklist is a simple tool designed to assist you in your research and selection of a 529 college savings plan. Before investing in a 529 plan, be sure to read the official program offering materials.
Steps:
- Use a separate checklist for each 529 plan you are considering.
- Use the "Notes" line to add any notes or thoughts you feel are relevant to that particular question. Information about the 529 plan being evaluated can be gathered from its official program disclosures, the plan web site, and third-party sources like Savingforcollege.com.
- Use the "Acceptable, Unacceptable, or Not Important" checkboxes to indicate your conclusions as to how well the 529 plan you are evaluating meets the various criteria. Some criteria will not make any difference in your selection of your plan and should be noted as Not Important. In lieu of simply indicating acceptable or unacceptable you may want to develop a rating scale, e.g. 1 through 5.
- Compare the checklists for the various 529 plans being considered and use the results to help you select the appropriate 529 plan.
- Who is eligible to use this particular 529 plan?
- U.S. citizens and resident aliens at least 18 years old with a SSI/TIN number, emancipated minors, UGMA/UTMA custodians, and legal entities.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- How do I enroll: through a financial advisor (generally higher expense) or directly with the program (generally lower expenses)?
- Enroll through a financial advisor.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- What, if any, age or time limits are imposed by this 529 plan that may restrict how long I can hold the plan?
- None
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- Can I complete the enrollment process for this 529 plan online (including funding the account)?
- No
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- Can I meet the plan's minimum contribution requirements either with a lump-sum contribution or by signing up for automatic contributions?
- No minimum.,
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- Is the plan's maximum contribution limit high enough to accommodate my college funding desires?
- Accepts contributions until all account balances in New Mexico's 529 plans for the same beneficiary reach $500,000.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- Will this 529 plan allow my other relatives and friends to make contributions directly to my account?
- Yes
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- If I live in the state offering this 529 plan, what are the state income tax deductions or credits I can claim for my contributions to it? (Note: If you live in Arizona, Kansas, Missouri, Maine, and Pennsylvania you do not have to use the in-state 529 plan to claim a deduction).
- Contributions to a New Mexico 529 plan are fully deductible in computing New Mexico taxable income.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- If I live in the state offering this 529 plan, what matching contributions might I be eligible for?
- None.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- If the state offering this 529 plan administers its own student financial aid programs, will my account in this plan be excluded for purposes of determining eligibility?
- Yes
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- If I prefer an investment that automatically changes to a more conservative asset mix as my child approaches college age, what "age-based" options are offered in this 529 plan?
- The Year of Enrollment Portfolios contain 11 portfolios of underlying mutual funds, ranging from 100% equity to 0% equity. Contributions are placed into the portfolio corresponding to the number of years to expected enrollment based on the age of the beneficiary or as selected by the account owner. 10 portfolios shift to a more conservative investment allocation over time, eventually transferring to the Scholar's Edge Today Portfolio.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- If I prefer one or more investments that do not adjust over time, what "static" options are offered in this 529 plan?
- Select among 4 Target-Risk portfolios with varying risk tolerances, 15 individual-fund portfolios, and the Capital Preservation Portfolio.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- Which mutual fund families, or other investment managers, are utilized in this 529 plan? Do the investment options consist of a single fund family or a mix of fund families?
- Principal, BlackRock, Vanguard, JPMorgan, and New York Life. Subadvisor MacKay Shields LLC
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- Does my preferred investment option in this program include foreign stocks, real estate, inflation-adjusted securities, or other sectors that I feel are desirable?
- Principal, BlackRock, Vanguard, JPMorgan, and New York Life. Subadvisor MacKay Shields LLC
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- Which type of mutual funds does my preferred investment option use: actively managed funds or passively managed index funds?
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- What is my assessment of the quality of the particular investment options in this 529 plan?
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- How acceptable is the range of investment options in this 529 plan in the event I wish to change investment options in the future?
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- How much is the enrollment fee in this 529 plan? Do I qualify for a waiver?
- None, but contributions may be subject to a sales charge depending on share class.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- How much is the account maintenance fee in this 529 plan? Do I qualify for a waiver?
- $20 annually for accounts with less than $25,000, waived if either the designated beneficiary or account owner is a New Mexico resident and for accounts with recurring contributions of at least $25 per month or $75 per quarter.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- What is the total asset-based expense ratio (or range of ratios) for the investment options in this plan?
- Class A: 0.53% - 1.61%
Class C: 1.28% - 2.36%
Class R: 0.28% - 1.36% - ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- How do the fees and expenses of this program compare to other 529 plans that offer investment options very similar to my preferred investment option in this program?
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- What are the special creditor protections for this 529 plan under the laws of the sponsoring state?
- Under New Mexico law, money credited to or expended from any New Mexico 529 plan by or on behalf of an account owner or beneficiary is exempt from all claims of creditors of the account owner, the beneficiary or the Education Trust Board.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- Is this 529 plan linked into my favorite rewards service (e.g. Fidelity 529 College Rewards Card, Futuretrust, Upromise)?
- Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- Will I have online access to my account for looking up my account values, etc?
- Yes
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- Who can I name as "payee" on distributions from this 529 plan? How easy is the process of requesting distributions?
- Eligible educational institution, beneficiary, or account owner, as directed by the account owner
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- Will this 529 plan accept my request to transfer the account owenership to someone else?
- Accepts requests to transfer account ownership.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- How thorough and understandable are the program's official disclosure materials, and how much help is available through the programs web site, call center, etc.?
- Accepts requests to transfer account ownership.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- Are there any other considerations unique to this program that can be considered advantages or disadvantages?
- Accepts requests to transfer account ownership.
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
- Before investing, be sure to read and understand the official program materials provided on the 529 plan's website.
- Click here to visit
- ( ) Acceptable ( ) Unacceptable ( ) Not Important
- Notes: _______________________________________________________________________
Enrollment Issues:
Program benefits:
Fees and expenses:
Other issues:
Financial Professionals
Pro Dashboard
Top 529 College Savings Plans
One-year rankings are based on a plan's average investment returns over the last 12 months.
State | Plan Name | |
---|---|---|
1 | Nevada | USAA 529 Education Savings Plan |
2 | Florida | Florida 529 Savings Plan |
3 | New Jersey | NJBEST 529 College Savings Plan |
Three-year rankings are based on a plan's average annual investment returns over the last three years.
State | Plan Name | |
---|---|---|
1 | South Dakota | CollegeAccess 529 (Direct-sold) |
2 | Wisconsin | Edvest 529 |
3 | Nevada | USAA 529 Education Savings Plan |
Five-year rankings are based on a plan's average annual investment returns over the last five years
State | Plan Name | |
---|---|---|
1 | Indiana | CollegeChoice 529 Direct Savings Plan |
2 | Florida | Florida 529 Savings Plan |
3 | Alaska | T. Rowe Price College Savings Plan |
10-year rankings are based on a plan's average annual investment returns over the last ten years.
State | Plan Name | |
---|---|---|
1 | West Virginia | SMART529 WV Direct College Savings Plan |
2 | South Carolina | Future Scholar 529 College Savings Plan (Direct-sold) |
3 | Ohio | Ohio's 529 Plan, CollegeAdvantage |