Latest / The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs
Why Your State Tax Break Is Costing You More Than You Think
Most families flock to their home state’s 529 plan for the immediate tax deduction, but a closer look at investment performance and fees reveals a hidden trade-off. We examine how rigid asset allocation rules in popular state plans like Virginia and New York can drag down long-term returns compared to no-fee out-of-state options. With college inflation running near seven percent this September of 2026, locking your money into a suboptimal fund because of a small upfront tax break might cost you tens of thousands over eighteen years. We break down the math on when the tax benefit actually…
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