Are 529 plans a good choice for college savings?

For many families, 529 plans will be the obvious choice for college savings. Most plans offer age-based investment options that will automatically rebalance, taking more risk as a child is young and less as they approach college age. You can open a 529 plan directly through your state’s plan website or through some online brokers.

How do I choose a 529 savings plan?

Start by looking at your state’s plans. Unlike retirement and other investment accounts, 529 savings plans are typically operated by states, which makes searching for the best option fairly easy. If your state offers a tax deduction for contributing, you’ll likely get the most bang for your buck by contributing to its plan.

What is the best 529 plan for You?

The best 529 plan for you is going to depend on your investment goals and the state where you live, because these plans can vary widely by state (as can the associated tax benefits for 529 contributions). Start by looking at your state’s plans.