West Virginia 529 Plan
SMART529
Morningstar NeutralQuick Facts
- Expense Ratio
- 0.12%
- Fee Range
- 0.26% - 1.30% annual fees
- Tax Benefit Type
- Tax Deduction
- Deduction Limit (Single / Married)
- Unlimited / Unlimited
- State Marginal Tax Rate
- 6.50%
- Carryforward
- None
- Income Limits
- No
- Any-State Deduction
- No
Should You Use West Virginia's 529 Plan?
West Virginia offers a tax deduction for contributions to the in-state plan only. With a 6.50% marginal state tax rate and a deduction limit of Unlimited, that translates to roughly $325 in annual tax savings on a $5,000 contribution. Compare this against the fee difference with a lower-cost out-of-state plan over your savings horizon.
West Virginia vs. Utah my529
Utah my529 is a commonly recommended low-cost reference plan. Here is how SMART529 compares.
| SMART529 | Utah my529 | |
|---|---|---|
| Expense Ratio | 0.12% | 0.13% |
| Morningstar Rating | neutral | gold |
| Tax Benefit | Unlimited state tax deduction on contributions | 5% tax credit on contributions up to $2,290 |
| Fee Range | 0.26% - 1.30% annual fees | 0.17% - 0.64% annual fees |
| Investments | Age-based and individual portfolios | Vanguard age-based and individual funds |
How to Open SMART529
You can open an account directly through the plan's website. You will need your Social Security number, the beneficiary's Social Security number, and your bank account information for funding contributions.
Frequently Asked Questions
What is West Virginia's 529 plan?
West Virginia's 529 plan is called SMART529. It is a tax-advantaged college savings account that allows you to invest money for qualified education expenses. Earnings grow tax-free at the federal level, and withdrawals for qualified expenses are not taxed.
How much can I deduct on my West Virginia taxes for 529 contributions?
West Virginia allows a state income tax deduction of up to Unlimited per year for single filers and Unlimited for married couples filing jointly. With a marginal state tax rate of 6.50%, that could save you up to $65,000 per year.
Is West Virginia's 529 plan worth it?
It depends on your situation. SMART529 has an expense ratio of 0.12% and provides a state tax deduction for contributions. Compare the value of the tax benefit against the fee difference with a lower-cost out-of-state plan like Utah my529 or Nevada Vanguard over your full savings horizon.
Can I use an out-of-state 529 plan in West Virginia?
Yes. You can open a 529 plan in any state, regardless of where you live. The funds can be used for qualified education expenses at any accredited institution nationwide. However, West Virginia's tax deduction only applies to contributions made to the in-state plan.
What is the expense ratio for West Virginia's 529 plan?
The SMART529 has an expense ratio of approximately 0.12% for the age-based portfolio option. The full fee range across all investment options is 0.26% - 1.30% annual fees. For comparison, Utah my529 charges approximately 0.13%.