Best 529 plan in the nation?

[FUEGO]

I currently have a 529 account (actually 3, 1 for each kid) with my own state's plan. Historically there has been a state tax deduction associates with contributions up to a large limit. Times being what they are, this state tax deduction appears to have disappeared going forward. Right now the 529 plan tacks on an extra 0.2 to 0.3% administrative fee on top of some very low expense ratios for vanguard fund offerings (institutional share class IIRC). So assume I'm paying around 0.30 to 0.35% expense ratio for my current 529 funds, with no extra fees.

From some quick research at savingforcollege.com, I have determined the NY State College Savings Program (Direct Investment) is the best nationwide plan that is open to residents of all states. They charge a flat 0.17% ER on a sufficiently diverse array of Vanguard funds (the 0.17% includes the underlying funds expense ratio). No other fees as far as I can tell.

Anything else out there that beats this plan? I saw South Carolina and Louisiana had competitive plans but they appear to be restricted to residents of the respective state.

For reference, I'll be dumping the investments into a Growth portfolio or something similar, and international investment options are a plus. Lifestrategy type funds (that do portfolio diversification for me) are totally acceptable. Approximate assets of $40000 divided between 3 accounts.

And yes, I am already maxing out IRA's, 401ks, 457s, HSA, etc. and have ample left over to put into taxable or 529.

 

[Htown Harry]

FWIW, here's a June comparison that suggests Utah is best for those living in states where deductability of contributions is not an issue:

The Best 529 in The Country Gets Even Better

 

[REWahoo]

FWIW, here's a June comparison that suggests Utah is best for those living in states where deductability of contributions is not an issue:

The Best 529 in The Country Gets Even Better

+1

I'm using the Utah 529 plan for my two grandchildren who were born too late to qualify for the old Texas Tomorrow Plan.

 

[RE2Boys]

While I haven't studied the fees in some years, when I established 529 plans for my boys Utah seemed best for low fees (Vanguard) and choices. I lived in AL at the time and the AL plan was terrible.

Now live in PA and you get a state tax deduction up to the federal gift tax exemption ($12,000??) and it doesn't matter what state's 529 plan you use.

 

[FUEGO]

Looks like the NY plan has pulled slightly ahead of the Utah plan generally. It appears Utah beats NY only in the FDIC insured savings option (0.16% for UT vs 0.17% for NYC). The global aggressive option is 0.215% at UT, 0.17% at NY, although in NY you have to hand mix the ingredients and manage over time. Maybe worth it to trim off 0.045% per year in ER.

Utah does offer a little broader investment options, so that may be worth the extra expense. If I was already at Utah, I probably wouldn't switch for the modest savings.

 

[lhamo]

We were NY state residents when we started our 529, and have just kept the money there. Have been happy with it, especially after they switched to Vanguard (used to be managed by TIAA-CREF). We'll probably just keep it there as it is easy and it is a good plan.

 

[FUEGO]

We were NY state residents when we started our 529, and have just kept the money there. Have been happy with it, especially after they switched to Vanguard (used to be managed by TIAA-CREF). We'll probably just keep it there as it is easy and it is a good plan.

I saw a blurb about Vanguard having the contract for NY 529 through 2019. Good news it sounds like. I am very glad to see some states getting competitive services like this.

 

[Bikerdude]

FWIW, here's a June comparison that suggests Utah is best for those living in states where deductability of contributions is not an issue:

The Best 529 in The Country Gets Even Better

I have 529's in CT and they are deductible on my State taxable income.

 

[retire2020]

I did my research in April and found NY state Direct to be best. I just made it simple and chose the age based option for my three kids.

 

[Sesq]

I saw something recently which suggests that NY won't let you roll money out to another plan. I found it odd, but didn't dig deeper since my 529 is in Utah and the cost difference isn't much (as you pointed out).

EDIT - I dug deeper. It seems the rollover issue is only an issue for NY taxpayers.

Scroll down on these links:
http://www.savingforcollege.com/529_plan_details/?page=plan_details&plan_id=37

http://www.osc.state.ny.us/college/saverfaq.htm