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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

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Best 529 college savings plan in Pennsylvania

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email

Q: I want to start a college savings account for our children but we have limited funds but could probably put in about $50 per month. We live in Pennsylvania and the children will probably attend state schools here in our state. Which 529 college saving plan is the best deal?

A: Pennsylvania is one of the best states for a lower income family to start a college savings plan. The state matches your contribution dollar-for-dollar up to $2000 over two years. There is a catch in that the best account manager, Vanguard Funds, has a $3500 minimum but you could move to that fund manager after your account grows to that amount with another plan. You might want to start with a regular trust account until you build up enough to start the 529 account. Pennsylvania allows residents to make contributions in any state 529 plan so many options are available. Contributions can be made directly or with an adviser's help. OnlineAdviser sets up 529 or UTMA accounts with all account managers including Vanguard.


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