Compare 529 Plans

Summary

Pennsylvania's 529 Investment Plan is available to residents of any state, and offers 26 Vanguard investment options, including a socially responsible equity portfolio. Pennsylvania residents may enjoy a state tax deduction for contributions to the plan.

The Vanguard 529 College Savings Plan, offered by Nevada, is available to residents of any state, and offers low costs, experience and easy-to-manage savings options.

Program type

Savings

Savings

How to enroll

Enroll directly with the program.

Enroll directly with the program.

Initial year of operation

2002, but substantially changed in November 2006

2002

State agency(ies)

Pennsylvania Treasury Department

Board of Trustees of the College Savings Plans of Nevada

Program manager

Pennsylvania Treasury Department, with Ascensus College Savings as record-keeper and servicing agent, and Vanguard as investment manager.

Ascensus College Savings

Program distributor

Pennsylvania Treasury Department

Vanguard Marketing Corporation

State residency requirements

None

None

Who can be a participant/owner in the program?

Individuals at least 18 years old, UGMA/UTMA custodians, and trusts.

U.S. citizens and resident aliens at least 18 years old and UGMA/UTMA custodians.

Significant time or age restrictions imposed by the program

None

None

Maximum contributions

Accepts contributions until all account balances in Pennsylvania's 529 plans for the same beneficiary reach $511,758.

Accepts contributions until all account balances in Nevada's 529 plans for the same beneficiary reach $500,000.

Minimum contributions

No initial deposit required. Subsequent deposits can be a little as $1.

The minimum initial contribution is $3,000 or $50 through an employer automatic investment plan. The minimum initial contribution for Nevada residents is $1,000 or $50 through employer automatic investment. The minimum subsequent contribution is $50.

Does the program offer an e-gifting platform for receiving gift contributions?

This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.

This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.

Age-based/Enrollment Year investment options

The Target Enrollment options contain 12 portfolios invested in Vanguard mutual funds and/or the Vanguard Short-Term Reserves Account. Contributions are placed into the portfolio corresponding to the beneficiary's age or anticipated year of enrollment and later reassigned to more conservative portfolios as the beneficiary approaches college age.

The Target Enrollment Portfolios contain 12 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the account owner's risk tolerance or the number of years to expected enrollment. 10 portfolios shift to a more conservative investment allocation over time, eventually transferring to the Vanguard Commencement Portfolio.

Static investment options

Select among 6 multi-fund portfolios (Aggressive Growth, Growth, Moderate Growth, Conservative Growth, Income, and Conservative Income) and 8 individual-fund portfolios.

Select among 5 multi-fund individual portfolios and 15 single-fund individual portfolios.

Underlying investments

Vanguard mutual funds

Vanguard mutual funds.

Enrollment or application fee

None.

None.

Account maintenance fee

$10 annually, waived for accounts that have elected electronic delivery of all documents.

None

Program management fees

0.29%, consisting of 0.0500% fee to the Commonwealth and 0.1175% combined fee to Upromise and Vanguard

0.11%

Expenses of the underlying investments

Ranges from 0.02% - 0.12%

Not applicable, 0.03% in the target enrollment portfolios; 0.03% to 0.04% in the static blend portfolios; and 0.01% to 0.31% in the individual portfolios.

Total asset-based expense ratio

0.1875% - 0.2875%

0.12% - 0.42%

Program match on contributions

None., The Pennsylvania Treasury Department invests $100 for every child born in the Commonwealth via the Keystone Scholars program. Parents have until a child's first birthday to claim the $100 Keystone Baby Scholars investment by registering online or calling 1-800-440-4000.

None.

State tax deduction or credit for contributions

Contributions to Pennsylvania AND non-Pennsylvania 529 plans of up to the gift-tax annual exclusion amount ($18,000 in 2024) per beneficiary are deductible in computing Pennsylvania taxable income. Spouses filing jointly must each have at least $18,000 in income to claim the maximum $36,000 per-beneficiary deduction. Rollovers from another 529 plan or from qualified U.S. savings bonds are not eligible for the deduction.

Not applicable. Nevada does not have a personal income tax.

Nevada employers who make a matching contribution to employees participating in a Nevada 529 college savings plan are eligible for a 25% tax credit on matched contributions up to $500 per employee per year.

State tax recapture provisions

Nonqualified distributions from any 529 plan are included by Pennsylvania taxpayers in Pennsylvania taxable income to the extent they are not a recovery of nondeductible contributions, following rules set forth in PIT Bulletin 2006-04. Rollovers are not subject to Pennsylvania tax.

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State definition of qualified expenses

The state's definition of qualified education expenses includes expenses for higher education, as well as up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. Distributions from a 529 account directly to a Roth IRA are considered a qualified expense for state income tax purposes.

The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, apprenticeship programs, interest and/or principal on qualified education loans up to a $10,000 lifetime cap, and up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. Distributions from a 529 account directly to a Roth IRA are considered a qualified expense.

State tax treatment of qualified distributions

Qualified distributions from Pennsylvania and non-Pennsylvania 529 plans are exempt. Accounts in a Pennsylvania 529 plan are also exempt from Pennsylvania inheritance tax.

Not applicable. Nevada does not have a personal income tax.

State tax treatment of rollovers

Pennsylvania follows federal tax-free treatment.

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Does the sponsoring state exclude the value of an account for state financial aid purposes?

Yes

No

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

No

Is there a rewards program or outside scholarship program that works with this program?

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.

Plan participants who are Pennsylvania residents are also eligible for "Tuition Rewards" - guaranteed tuition discounts at over 330 colleges participating in the privately-run SAGE Scholars program.

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.

To whom are distributions made payable

The account owner, designated beneficiary, or an eligible educational institution.

Eligible educational institution, beneficiary, or account owner, as directed by the account owner.

Policy regarding participant/owner changes

Accepts requests to transfer account ownership.

Accepts requests to transfer account ownership.

Does participant have online password-protected access to account?

Yes

Yes

Can the complete enrollment process including funding be done online?

Yes

Yes

Telephone

1-800-440-4000

1-866-734-4530