Hello,
I am in the process of setting up a college fund for my 5 yr old son and am so confused as to which one to pick.

I am considering either the VA (VEST), NY 529 Direct plan or the UTAH plans.

I am currently a VA resident and will probably be moving to NJ in about 2 years due to my job. I like the NY plan the best, however I am not certain if I should go with the NY one due to overall performance and costs or should I go with the VA one and get the $4K income tax credit for the next 3 years and then transfer the plan to the NY one after that. Other things to consider is the cost associated with each plan; The NY and UTAH plans are cheaper than the VA plans.

Any advice would be much appreciated. So confused.

Thanks

Amit,

If you are thinking about VEST solely for the VA tax deduction, you should read the rules very carefully. The deductions might be subject to clawback if you move the account.

Chip

Chip,
Thanks for the respons.

I didn't know about this clause. So basically clawback is if I rollover my VA acct to another state then I will have to pay all the tax savings for the previous years?

If that is the case, with the assumption the that I will be out of state for all VA, NY and UT, which one would you guys recommend in terms of overall performance, value, cost, etc.

Sorry for all the noob questions

THanks,
Amit

I am not 100% sure on what VA does as far as getting the deductions back or whether it is enforcable or not which is why I responded that you should review the rules. I have VEST and VA College America accounts for my daughters and recall reading something about what happens if you don't keep the accounts, but I don't recall the details. It is not an issue for me yet as I am a VA resident and probably will be through my kids' college experience.

Chip