Which 529 Plan Should You Choose?

What many people don't realize is that you can choose any state’s 529 plan—regardless of where you live. While every state offers its own version, you're free to invest in your home state's plan or another state's if it better fits your needs. So the big question becomes: which state's 529 plan is best for you?

In this guide, we'll help you evaluate the key factors that go into selecting a plan and even offer a simple tool to help you compare.

Factors to Consider When Choosing a Plan

• State Tax Benefits: Does your state offer a deduction or credit for contributing to its plan?
• Investment Options: Are the funds low-fee, diversified, and age-based?
• Fees: Look for plans with low management and administrative fees.
• Plan Ratings: Some plans consistently perform better and are rated higher by independent analysts like Morningstar.
• Ease of Use: Is the plan's website intuitive? Are contributions and withdrawals easy to manage?

Top-Rated 529 Plans (Regardless of State)

Some plans are so strong that even residents of other states choose them. As of the latest ratings, top picks include:

• Utah’s my529: Low fees, excellent customization, top-tier performance
• New York’s 529 Direct Plan: Simplicity, Vanguard funds, low costs
• Nevada’s Vanguard 529: Strong brand, solid performance, ease of access

Which Plan Might Be Best for You?

Use our interactive calculator below. Enter your state and a few preferences, and we'll help suggest a good starting point.

Can You Switch Plans Later?

Yes! You're allowed to roll over your 529 from one state plan to another once per year without penalty. This gives you flexibility if your state's plan changes—or you find a better fit elsewhere.

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