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529 accounts for Kids

529 accounts for Kids

sjenkins
sjenkins 108 XP · · 4 replies

Hello community, are all 529 accounts created equal so it doesn’t matter where you open them? Both my husband and I are military and have a TX residence. We would like to open a 529 account for each of our three children with fidelity since that’s where we currently hold our investments. Just wanted to make sure that’s the best choice. Thanks!

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Replies (4)

chrisburton

chrisburton

1 week ago

They are not equal. They are run by each individual state and they all do different things. At one point, you could contribute to Colorado's 529 while living in Maryland (I don't know if that's still the case). There are a lot of rules and things to understand.

garyw

garyw

75 XP

1 month ago

I agree with AmandaFi. I too live in TX and researched 529 Plans for my grandchildren several years ago (there are some 529 plan rating sites out there). The three major considerations seemed to be fees, investment options/flexibility, and (in some states) state income tax considerations (not relevant in TX).. As I recall neither the TX State Plans nor the private plans offered by Fidelity (and other private brokerages) were particularly competitive (and I seem to recall that the TX plan in particular was not great for private or out of state schools, if that might be of interest?). I too chose Utah 529 Plan – for low cost and max flexibility (it is one of the top rated plans nationwide) and have been happy with it. That is my recollection anyway (for what it is worth).

amandafi

amandafi

1 month ago

Plans vary by state. We are in Texas and utilize Utah's my529 plan. Some plans have lower fees and better investment options than others. My husband did the leg work on 529s before our oldest was born so I don’t know which of those factors led to choosing the Utah plan, but it’s been really easy to manage and I know it’s a popular choice. Good luck!

sjenkins

sjenkins

108 XP

1 month ago

Thank you!

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