529 Plan and College Savings

Archive for July, 2009

Question: Having a Baby girl in May. Can anyone give me some direction in starting a 529 college saving plan ???

How it works, How soon I can set it up, How much can be invested annually, Who can contribute to it ??? I already ordered some information from Fidelity. I just want to hear from people who have set one up or is setting one up now for their kids. Just the basics.

Answer: Congrats on the daughter!

Each state has its own plan… Many of the states have 2. You can use any state’s plan. You are not limited to the state you live in.

As soon as you have the SSN# for your daughter, you can set up the plan. It usually takes 3 week or so to get the SSN#.

My son was born in June, and I did hours of research. I live in California, but chose Utah’s plan because the fees are way less… And they are partnered with Vanguard… Check out my links below.

I don’t believe there is a max annual contribution for a 529 Plan… I think there is a max contribution for the life of the plan of about $310,000.

UA College Savings Plan 2010 interview clip from the show The PFD & You