529 Plan Kentucky
May 22nd, 2006
Question: I’m considering a 529 or other investment for my new godson. Please help!?
My godson is just 5 months old. I am considering opening up a 529 Plan for him. However, I live in Kentucky and he lives in Ohio. How do I find the best plan?
Also, given how young he is, what other investments would be good for him? I don’t have a lot to contribute right now, as I just got out of college. But I expect to contribute a lot more within the next year.
Answer: Assuming you want a savings plan (not a prepaid plan) that he can use at any college in the country, you can pick ANY state plan that does not have a residency requirement (most do not).
Two reasons to use the plan for your state: (1) some states allow you to reduce your state taxes (by credit or deductions) in some cases. (2) Some employers offer payroll deductions for continuous contributions, but often only for the state (plan) in which you work.
Other than that, pick the best plan.
I generally recommend: Utah, Iowa, & New York. “Great Plans”
Both Kentucky and Ohio have good plans. You would do fine to pick either.
Kentucky Education Savings Plan Trust
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