Checklist for the Invest529

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:

1. Use a separate checklist for each 529 plan you are considering.
2. 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.
3. 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.
4. Compare the checklists for the various 529 plans being considered and use the results to help you select the appropriate 529 plan.

Enrollment Issues:

Who is eligible to use this particular 529 plan?

U.S. citizens and legal residents at least 18 years old, UGMA/UTMA custodians, and legal entities.

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How do I enroll: through a financial advisor (generally higher expense) or directly with the program (generally lower expenses)?

Enroll directly with the program.

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What, if any, age or time limits are imposed by this 529 plan that may restrict how long I can hold the plan?

The account must be used within thirty years after the projected date of high school graduation, or within thirty years after account is opened if the beneficiary has already graduated from high school, unless an extension is granted by the program.

A Tuition Track Portfolio Account must be depleted by the tenth anniversary of the beneficiary's expected usage date.

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Can I complete the enrollment process for this 529 plan online (including funding the account)?

Yes, once an account has been accepted, online payments are accepted.

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Can I meet the plan's minimum contribution requirements either with a lump-sum contribution or by signing up for automatic contributions?

The minimum initial contribution is $10. No minimum ongoing contributions are required.

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Is the plan's maximum contribution limit high enough to accommodate my college funding desires?

Accepts contributions until all account balances in Virginia's 529 plans for the same beneficiary reach $550,000.

The value of a Tuition Track Unit is 1% of Average Tuition as determined annually by Virginia529 (i.e. one hundred Tuition Track Units are equal in value, at maturity, to one (1) year of Average Tuition). A maximum of 1,000 Tuition Track Units is permitted per Beneficiary, subject to the Maximum Account Balance.

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Will this 529 plan allow my other relatives and friends to make contributions directly to my account?

Yes

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Program benefits:

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 Virginia 529 plan of up to $4,000 per account per year are deductible in computing Virginia taxable income, with an unlimited carryforward of excess contributions. Contributions are fully deductible in the year of contribution for taxpayers at least 70 years of age. Contributions from a non-owner are deductible by the account owner and not by the non-owner/contributor. Contribution deadline is receipt (not postmark date) by the last business day of the year based on agency calendar.

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If I live in the state offering this 529 plan, what matching contributions might I be eligible for?

None.

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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?

No

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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 Target Enrollment Portfolios option contains 8 portfolios (including 2 portfolios closed to new participants) of underlying mutual funds and separately-managed investments.

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If I prefer one or more investments that do not adjust over time, what "static" options are offered in this 529 plan?

Select among 15 portfolios, including an Invesco stable value option and an FDIC-insured savings option. Twelve of the portfolios invest in Vanguard funds. The ESG Core Equity Portfolio invests in the Parnassus Core Equity Fund.

The Tuition Track Portfolio, is an exclusive option for Virginia residents. The portfolio tracks average tuition growth at Virginia public universities (Average Tuition) and avoids market risk by protecting families' principal investment. With the Tuition Track Portfolio, families purchase units that may be used to cover tuition and other qualified higher education expenses.

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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?

Atlantic Union Bank, Blackstone Property Partners, Capital Research & Management Co., Dimensional Fund Advisors, LP, Invesco Advisers, Inc., Neuberger Berman Investment Advisers, Parnassus Investments, PGIM Fixed Income, The Vanguard Group, Inc., Touchstone Investments, UBS Trumbull Property, Wellington Management Co., LLP; Tuition Track Portfolio may invest in Acadian Asset Management, LLC, BlackRock MSCI Equity Index, Capital Research & Management Co., Dimensional Fund Advisors, LP, Sands Capital Management , LLC, Adams Street Partners, Aether Investment Partners, LLC, Apogem Capital, Asia Alternatives Management, LLC, Aventura Holdings, LLC, Bain Capital Real Estate, Commonfund, Hamilton Lane, Horsley Bridge Partners, LGT Capital Partners, Morgan Stanley Real Estate Advisor, Inc., Neuberger Berman, Related Fund Management, LLC, Starwood Capital Group, LLC, Stockbridge Capital Group, LLC, UBS Realty Investors, LLC, Ares Capital Management, Brigade Capital Management, LP, The Carlyle Group, Chorus Capital Management, LTD, Dreyfus Cash Investment Strategies, Eagle Point Credit Management, LLC, Golub Capital, Loomis, Sayles & Company, LP, Monarch Alternative Capital, LP, Neuberger Berman, PGIM, Inc., Schroders Investment Management, Inc., Shenkman Capital Management, Inc., Wellington Management Co., LLP

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Does my preferred investment option in this program include foreign stocks, real estate, inflation-adjusted securities, or other sectors that I feel are desirable?

Atlantic Union Bank, Blackstone Property Partners, Capital Research & Management Co., Dimensional Fund Advisors, LP, Invesco Advisers, Inc., Neuberger Berman Investment Advisers, Parnassus Investments, PGIM Fixed Income, The Vanguard Group, Inc., Touchstone Investments, UBS Trumbull Property, Wellington Management Co., LLP; Tuition Track Portfolio may invest in Acadian Asset Management, LLC, BlackRock MSCI Equity Index, Capital Research & Management Co., Dimensional Fund Advisors, LP, Sands Capital Management , LLC, Adams Street Partners, Aether Investment Partners, LLC, Apogem Capital, Asia Alternatives Management, LLC, Aventura Holdings, LLC, Bain Capital Real Estate, Commonfund, Hamilton Lane, Horsley Bridge Partners, LGT Capital Partners, Morgan Stanley Real Estate Advisor, Inc., Neuberger Berman, Related Fund Management, LLC, Starwood Capital Group, LLC, Stockbridge Capital Group, LLC, UBS Realty Investors, LLC, Ares Capital Management, Brigade Capital Management, LP, The Carlyle Group, Chorus Capital Management, LTD, Dreyfus Cash Investment Strategies, Eagle Point Credit Management, LLC, Golub Capital, Loomis, Sayles & Company, LP, Monarch Alternative Capital, LP, Neuberger Berman, PGIM, Inc., Schroders Investment Management, Inc., Shenkman Capital Management, Inc., Wellington Management Co., LLP

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Which type of mutual funds does my preferred investment option use: actively managed funds or passively managed index funds?

Actively managed accounts, index funds, and a ESG fund.

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What is my assessment of the quality of the particular investment options in this 529 plan?

Actively managed accounts, index funds, and a ESG fund.

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How acceptable is the range of investment options in this 529 plan in the event I wish to change investment options in the future?

Actively managed accounts, index funds, and a ESG fund.

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Fees and expenses:

How much is the enrollment fee in this 529 plan? Do I qualify for a waiver?

Effective May 1, 2014, VA529 no longer charges an application fee for this program if application is submitted online.

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How much is the account maintenance fee in this 529 plan? Do I qualify for a waiver?

None.

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What is the total asset-based expense ratio (or range of ratios) for the investment options in this plan?

0.0% - 0.559%

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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?

The Vanguard investment options are among the lowest-cost of any 529 plan using Vanguard Funds.

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Other issues:

What are the special creditor protections for this 529 plan under the laws of the sponsoring state?

Under Virginia law, money in a Virginia 529 plan shall be exempt from creditor process and shall not be liable to attachment, garnishment, or other process, nor shall it be seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay any debt or liability of any contributor or beneficiary.

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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.

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Will I have online access to my account for looking up my account values, etc?

Yes

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Who can I name as "payee" on distributions from this 529 plan? How easy is the process of requesting distributions?

Account owner, beneficiary, eligible educational institution, or other third party, as directed by account owner.

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Will this 529 plan accept my request to transfer the account owenership to someone else?

Accepts requests to transfer account ownership ($10 fee except where owner has died or become disabled).

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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 ($10 fee except where owner has died or become disabled).

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Are there any other considerations unique to this program that can be considered advantages or disadvantages?

Accepts requests to transfer account ownership ($10 fee except where owner has died or become disabled).

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Before investing, be sure to read and understand the official program materials provided on the 529 plan's website.

Click here to visit

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