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What states offer the best 529 plan tax benefits?

According to Morningstar, here are the 10 cheapest 529 plans based on their overall expense ratios: 1. Future Scholar 529 (S.C.) .13 percent 2. New York's 529 Program .17 percent 3. Utah Educational Savings Plan .23 percent 4. Michigan Education Savings Program .25 percent

What are the cheapest 529 plans?

The cheapest 529 plans are well below the price of most off-the-shelf mutual funds, according to a new analysis by investment research firm Morningstar. The most inexpensive 529 plans are all directly sold to the public. By contrast, the priciest plans are sold through financial advisers, adding an extra layer of fees.

What are the benefits of investing in a 529 plan?

One of the benefits of 529 plans is the tax-free earnings that grow over a period of time. The longer your money is invested, the more time it has to grow and the greater your tax benefits. You will lose some of these potential benefits if you withdraw money from a 529 plan account within a short period of time after it is contributed.

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