Compare College Savings Options

Comparison of College Savings Options

529 Plans were created as a complement to prepaid tuition plans established by many states. Unlike prepaid tuition plans, there are generally no residency requirements.

529 savings plan monies can be used to pay for higher education costs at any accredited college, university or technical school in any state. This might be a college, graduate school, professional school, or a post-secondary vocational or trade school. The school may be either private or public; in-state or out-of-state.

This chart makes it easy to compare different savings vehicles side-by-side:

Comparison Table

Chart data as of December 31, 2011.

*Assets placed into a 529 College Savings Plan are considered removed from the donor’s estate for tax purposes. An exception to this rule is if the Account Owner passes away and is listed as the Designated Beneficiary on the account. In this instance, the value of the account will be included in the account owner's taxable estate. You should consult a qualified tax advisor for any tax related issues involving your account.

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NOTICE: CollegeAccess 529 Plan accounts are not insured by any state, and neither the principal deposited nor any investment return is guaranteed by any state. Furthermore, the accounts are not insured, nor the principal or any investment return guaranteed, by the federal government or any federal agency.

Before investing, an individual should consider whether their state of residency — or their intended designated beneficiary's state of residency — offers any benefit, such as a state tax deduction, or any other benefits that are only available for investments in that state's 529 savings program.

An investor should consider the investment objectives, risks, and charges and expenses of the CollegeAccess 529 Plan before investing. This and other important information is in the Plan Disclosure Statement, which should be read carefully before investing, and which is available on this Web site. Click here to download a copy.

The Program Manager for the CollegeAccess 529 Plan is Allianz Global Investors Distributors LLC, 1633 Broadway, New York, NY 10019-7585, 1-866-529-7462. The Plan is issued by the South Dakota Higher Education Savings Trust and is underwritten by Allianz Global Investors Distributors LLC.

Withdrawals from a 529 Plan for qualified expenses are free from federal income tax. Qualified expenses include tuition and fees, room and board, books and other supplies.

State taxes may apply for residents of states other than South Dakota. Speak to your tax or financial advisor.

Non-qualified withdrawals are subject to federal income tax and a 10% penalty tax on earnings, with some exceptions, and may also be subject to state tax.

Please see the Plan Disclosure Statement for our privacy policy.