Click on a state or choose from the menu below for details on the savings plans and prepaid plans offered by 50 states. (The District of Columbia has a plan in development.) States have been tinkering with their plans frequently, so request further information directly using the phone numbers or Web links in each profile. Also be sure to check out the top savings plans and notes about the listings below.
Click on a state or choose one from the pull-down menu.
These eight state plans are open to nonresidents, have reasonable fees and expenses, and multiple investment choices. Consider your home state's offerings first -- especially if your contributions would be state-tax deductible. If they're not suitable, then look for alternatives among these recommendations.
About the listings
Most savings plans allow you to enroll at any time, while many prepaid plans limit enrollment to just a few months during the year.
Now that 529 plans are federally tax-free, most states are expected to follow suit. State tax deduction rules for contributions are included in the profiles above, but not which plans exempted earnings from state taxes prior to the tax-law changes.
"Refund provisions" explains what kind of penalty or reduced return you'd suffer if you make a nonqualified withdrawal -- one not used for higher-education expenses. Penalties are usually waived if you make a nonqualified withdrawal because the beneficiary dies, becomes disabled, or earns a full scholarship.
All savings and prepaid plans are transferable to out-of-state and private institutions (though a few prepaid plans may make lower payouts to those schools).
