Massachusetts has two programs available: the U.Fund College Investing Plan, a direct-sold 529 college savings plan managed by Fidelity Investments using Fidelity mutual funds, and the U.Plan Prepaid Tuition Program, offered by MEFA.
Massachusetts 529 Tax Benefit
Consumer plans fall under three categories: direct-sold, unit-type prepaid, and contract-type prepaid.
529 plans allow investors to purchase directly from the plan manager. You will have to rely on your own research to identify your best options, or you can hire a fee-based financial planner.
Direct-sold 529 plans are approved and monitored by each state and are managed by professional investment firms. There are no sales charges with these plans.
Unit-type prepaid plans allow you to buy 'units' of tuition which may equate to credits or hours.
Contract-type prepaid plans can be purchased to cover between 1 to 5 years of future tuition either on a lump sum or installment basis.
Massachusetts' U.Fund College Investing Plan, a Fidelity-managed 529 plan follows the same approach as other Fidelity plans in Arizona, Connecticut, Delaware and New Hampshire. It features three age-based options; one using Fidelity Series actively managed funds; one using Fidelity Series index funds; and a third using a combination of the two. The plan also offers 11 static options, and an option that invests in an interest-bearing deposit account....
The Massachusetts U.Plan Prepaid Tuition Program, not a true 529 plan, issues Massachusetts general obligation bonds (federal and MA state tax-free) which will be accepted at participating Massachusetts institutions in payment of tuition.
Prepaid Plans let you pre-pay all or part of the costs of a college education. They may also be converted for use at private and out-of-state colleges.
529 ABLE accounts allow americans living with disabilities to save money for college and other expenses in a tax-deferred account without affecting their eligibility to receive medicaid, supplemental security income or other public benefits.