What is a 529 plan and how does it work?
A college savings 529 plan allows you to transfer the money from state to state and to use the savings toward any college of your child’s choosing. Both savings and pre-paid tuition plans can be transferred from family member to family member, so if one child decides not to attend college, you can use that money toward another child’s tuition.
What is a direct-sold or advisor-sold 529 savings plan?
A direct-sold 529 savings plan is 529 savings plan that is sold directly by a state, financial institution. If you enroll in a direct-sold 529 savings plan, you are responsible for managing your own investments through their plan’s online account portal. An advisor-sold 529 savings plan is a 529 savings plan that is sold through an investment firm.
Should you invest in Illinois’ 529 college savings plan?
With a tax deduction of up to $10,000 for single filers and $20,000 for couples, Illinois’ 529 is a great way to invest for your child’s college years. 5 It also happens to be a solid choice for parents who live in states with a less enticing plan. A massive selection of investment choices that will keep even the pickiest parents satisfied
What is the 5-cap rating for 529 plans?
The 5-Cap Rating represents our opinion of the overall usefulness of a state’s 529 plan based on many considerations. The 5-Cap Rating is not strictly a measure of historical returns and it is not a predictor of future investment performance, level of investment risk, or financial solvency of the program funds.
A 529 plan is a college savings plan that offers tax and financial aid benefits. 529 plans may also be used to save and invest for K-12 tuition in addition to college costs. There are two types of 529 plans: college savings plans and prepaid tuition plans.
Can You List more than one beneficiary on a 529 plan?
You can only list a single beneficiary on each 529 plan account, and your life will be so much easier when it comes time to pay for college if the name of the beneficiary matches the child whose bills you are paying. But what if you end up with too much in one account and not enough in the other?
What is the expense ratio for 529 plans in each state?
Direct-Sold 529 Plans by State State Plan Name Expense Ratio Idaho IDeal – Idaho College Savings Program 0.34% to 0.49% Illinois Bright Start College Savings Program – D 0.10% to 0.83% Indiana CollegeChoice 529 Direct Savings Plan 0.14% to 0.77% Indiana CollegeChoice CD 529 Savings Plan N/A