Best and Worst 529 College-Savings Plans
April 23, 2008 – 1:49 am by Nick
529 college-savings plans are the main choice for several parents preparing for their children’s future. The tax-advantaged 529 plans vary in quality from state to state. Investment researcher, Morningstar Inc., has released its report, ranking the best and worst 529 plans.
529 college-savings plans are accounts that offer wide range of mutual funds. Earnings and distributions are tax-free. They can only be used to pay for higher education. Parents can choose the plan run by any state in the US. Although investors can collect additional tax breaks for choosing their own state’s plan. For the full list go to Morningstar’s 529 plans page.
The Wall Street Journal features an excellent overview of the report. Here is a WSJ summarizing this years best and worst:
