The 15 lowest-cost 529 savings plans

Saving for College has recently updated its 529 Fee Study with cost information available as of March 2024.

We compile data provided in the official 529 program disclosure statements to update this study twice a year. The study uses 10-year total costs as estimated by the 529 plans based on a hypothetical $10,000 investment earning 5% annually. We then compare 10-year costs of the lowest and highest-cost options, alongside the second lowest and second highest alternatives, for all direct-sold 529 savings plans.

529 plan fees can eat into your earnings over time, so it’s important to understand how much you can expect to pay over time. Keep in mind that fees can vary within a single plan depending on which portfolio you select.

These are the 15 lowest-cost direct-sold 529 plans available.

Lowest Cost 529 Plans

Based on 10-year costs on $10,000 investment

See the full list of all direct-sold plans.

How 529 plan fees work

529 plan accounts may have various fees based on the plan and account type. Direct-sold 529 plans generally offer lower fees compared to advisor-sold plans, but the account owner is responsible for selecting investments for a direct-sold 529.

Four common fees associated with 529 plans are:

1. Management and administration fees: These are management fees paid to outside firms for 529 plan programs, ranging from 0.10% to 0.70%.
2. Investment expenses: Investing in mutual funds, index funds, exchange-traded funds (ETFs), and other types of investments with your 529 contributions involve certain fees that vary. For example, Vanguard’s 529 plan age-based investment target enrollment date funds have an expense ratio of 0.14%.
3. Sales charges: Advisor-sold plans may include fees not found in direct-sold plans.
4. Account maintenance fees: Some 529 plans charge a flat fee of $10 to $25 per year per account.

For more details on the above fees, check out our post about 529 plan fees.