529 College Savings Plans Are Getting Cheaper
"Since Congress supercharged 529 plans in 2001, they've become the predominant tax-advantaged college savings program. ... 529 college savings plans have gotten cheaper in many states, according to recent reports from Savingforcollege.com," FOX Business reports.
"529 plans in New Jersey, Vermont, Virginia, and Pennsylvania are among the plans to recently reduce their management fees—the costs that administrators charge to manage the funds. These are the fees which can include the costs related to recordkeeping, customer service, and mailing statements to savers. They, and seven other states, have reduced their management fees from 0.03 to 0.20 percent annually—resulting in a savings of as much as $20 for every $10,000 invested every year.
But management fees aren't the only costs 529 savers bear—there's also the costs of the funds. Most 529 plans will invest in more then one mutual fund, and there will be an additional cost to investing in each of the funds in the plan. Funds with higher expense ratios, over time, may result in lower returns."
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