NEW MEXICO

The Education Plan of New Mexico

Type: Savings

Phone: 877-EDPLAN8

State tax deduction for residents: Deduction for all contributions

Open to nonresidents: Yes

Refund provisions: Penalty of 10% of earnings

Minimum/maximum contributions: $250 or $25 a month / $294,000

Other: For New Mexico residents, there is a one-year waiting period before you can make withdrawals.

Run by Schoolhouse Capital/State Street Global Advisors, this is the only New Mexico plan you can purchase directly. The plan offers an age-based portfolio and 100% equity portfolio, plus a bond fund and a money-market fund. The age-based option is 85% in equities up to age 6; bond and money-market funds overtake stocks at age 15. You also can choose any of the age-banded "slices" within the portfolio as a stand-alone investment option (i.e., you could choose to be in 85% stocks and 15% bonds for the entire duration of your investment.)

Expenses range from 0.71% to 1.5%, depending on your investment choices. There's also a $30 annual maintenance fee, waived for New Mexico residents, automatic contributions, and account balances of $10,000 or more.

Arrive Education Savings Plan
This is Schoolhouse's broker-sold plan and is similar to the plan above, with the addition of a "capital-preservation" portfolio and 14 individual mutual funds. Expenses can vary significantly depending on investment choice and share class, ranging from 0.84% to 1.98%. Plus, there's a $25 annual fee for accounts less than $25,000.

CollegeSense 529 Higher Education Savings Plan
Run by New York Life, this plan mirrors the two described above but does not include individual mutual funds. Expenses range from 0.84% to 2.62%, plus a $25 annual fee that can be waived.

Scholar's Edge
Another clone, sponsored by Oppenheimer Funds. Does not include individual funds. Expenses range from 0.49% to 1.71%.

Name: New Mexico Education Plan's Prepaid Tuition Program

Type: Prepaid (contract)

Phone: 800-499-7581

State tax deduction for residents: Deduction for all contributions

Open to non-residents: No

Refund provisions: During the first five years, return of contributions only. Afterward, return of contributions plus a "reasonable" rate of return, set by the state

Minimum/maximum contributions: $1,003 for a one-year community college contract / $19,838 for five-year university contract

Enrollment period: September through December

Other: There is a five-year waiting period before you can make withdrawals.

This is a straightforward prepaid plan and contributions are fully deductible on New Mexico tax returns. But the plan is not backed by the full faith and credit of the state. And if you use the contract at a private or out of state college you get a return equal to the lesser of average tuition growth at public colleges in New Mexico or a "reasonable" rate of return determined by the state.

State College Savings Plans