Yes. There are important differences in both state laws and plan characteristics that should be considered. Here are several important considerations:
1. Contribution limits: Are the limits of other state's plans consistent with those of your home state?
2. Income tax incentives: Some states provide a state income tax incentive for some but not all 529 plans. Check with your state department of revenue for these provisions.
3. Investment options: Does the plan offer appropriate investment options? Many plans offer different investment options. Compare their objectives to yours, and review their asset allocation (i.e., the weighing of stocks, bonds, and cash assets) at various ages.
4. Fees: Compare the fees of the various plans.
For additional information, download this helpful reference: College Savings Plans—School Yourself Before You Invest (www.nasd.com/InvestorInformation/InvestorAlerts/529Plans/CollegeSavingsPlans--SchoolYourselfBeforeYouInvest/index.htm).
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