WEST VIRGINIA

Smart 529, The College Savings Solution

Type: Savings

Phone: 866-574-3542

State tax deduction for residents: Deduction for full amount of contribution

Open to nonresidents: Yes

Refund provisions: Penalty 10% of earnings plus a $50 fee

Minimum / maximum contributions: $100 ($500 for nonresidents) / $265,620

The plan, managed by Hartford Life Insurance, offers four age-based portfolios that are invested 100% in stocks until age 8 then shift to a mixture of stocks and fixed income investments as the child gets older. Or choose from three fixed portfolios: aggressive growth, growth and balanced. You also can structure a portfolio with up to eight individual fund options, but those are available only through brokers.

There's a $25 annual fee that is waived when account balances exceed $25,000 or if automatic investments of $50 or more are made. For West Virginia residents who purchase direct, there's a 1.16% annual fee. Nonresidents must buy through brokers at up to 2.15% a year.

Smart 529, The College Savings Solution

Type: Prepaid (contract)

Phone: 866-574-3542

State tax deduction for residents: Deduction for full amount of contribution

Open to nonresidents: No

Refund provisions: Account can be canceled at any time. Penalties vary based on when the account is canceled.

Minimum/maximum contributions: Varies depending on payment plan and age of beneficiary.

Enrollment: Closed to new enrollments

Other: Beneficiary must be in the ninth grade or younger to enroll

Prepaid contracts aren't expensive, but several negatives detract from the plan. First, there's no state guarantee that tuition will be covered if the plan's investments fail to keep up with tuition inflation. Also, a $50 charge may be assessed for any early withdrawal that depletes the account.

State College Savings Plans