Best 529 Plans 2026: Utah, NY, Nevada, Illinois & CA
The wrong 529 plan costs families thousands in excess fees over 18 years. This guide compares 5 options using published specifications, manufacturer documentation and independent reviews — not hands-on testing.
Each plan was evaluated on total expense ratios (using an age-based moderate-risk portfolio), available fund families, state tax deduction value per $10,000 contributed, and account minimums. Fee data pulled from each plan's current program disclosure statements. We did not test these products ourselves.
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Utah my529 Plan
Morningstar Gold-rated plan at my529.org — no minimum to open, 0.10% floor expense ratio on Vanguard/DFA portfolios, best option for out-of-state savers
New York 529 Direct Plan
Vanguard-only fund lineup via nysaves.org — $10,000/yr state deduction for NY joint filers, 0.12% age-based floor, $0 minimum
Nevada Vanguard 529 Plan
Vanguard-managed direct plan at vanguard.com/529 — ideal for no-income-tax state residents, $3,000 minimum, integrated Vanguard dashboard
Illinois Bright Start 529
Union Bank & Trust-managed at brightstart.com — 24 fund options, $20,000/yr IL joint deduction worth $990/yr at 4.95% rate, $0 minimum
California ScholarShare 529
TIAA-managed at scholarshare529.com — 0.09% floor expense ratio, no CA state deduction, $25 minimum, $15/month auto-invest available
How We Compared These 529 Plans
Five plans. One question: where does your money grow fastest after fees and taxes? The table below cuts through the marketing.
| Plan | Best Expense Ratio | State Tax Benefit | Best For | Verdict | |---|---|---|---|---| | Utah my529 | 0.10%–0.14% | UT residents only | Out-of-state savers | Top overall | | New York 529 Direct | 0.12%–0.16% | $10,000/yr deduction | NY residents | Best in-state deal | | Nevada Vanguard 529 | 0.14%–0.18% | None (no income tax) | No-income-tax states | Solid Vanguard option | | Illinois Bright Start | 0.10%–0.18% | $10,000/yr deduction | IL residents | Best IL value | | California ScholarShare 529 | 0.09%–0.16% | None (CA quirk) | CA residents needing TIAA | Best CA option |
The fee gap between the cheapest and most expensive age-based portfolios in this group runs from 0.09% to roughly 0.18%. On a $100,000 balance, that spread equals $90 per year — and it compounds. Over 18 years at 7% average returns, that gap is worth around $3,200 in missed growth.
State tax deductions change the math dramatically for in-state residents. An Illinois filer in the 4.95% tax bracket saves $495 the year they contribute $10,000 — that's an instant 4.95% return before any market movement. If your state has a deduction and a decent plan, skip the out-of-state options.
Utah my529 — Best for Out-of-State Residents
Utah my529 consistently earns top marks from Morningstar (Gold rating) and Savingforcollege.com. The reason is simple: expense ratios on the Vanguard-based age-based portfolios start at 0.10% — among the lowest available nationally. No advisor-sold share class, no marketing overlay, no commission drag.
The plan offers 12 customizable investment options including age-based tracks and 18 individual fund options from Vanguard, Dimensional Fund Advisors (DFA), and PIMCO. That DFA access is unusual — most state plans stick to one fund family. If you want factor-tilted small-cap or international exposure inside a 529, Utah delivers it at institutional pricing.
The limitation is clear: Utah offers no state income tax deduction for out-of-state residents. If you live in Illinois, New York, or another state with a deduction and a competitive plan, run the numbers first. A $495 first-year tax break from Illinois Bright Start often outweighs the fee advantage of my529 unless you plan to stay in the plan for 15+ years with a large balance.
Account minimum is $0 to open, and contributions can be as small as $1. Rollovers from other states' 529 plans are accepted. Utah residents get a state income tax credit (not just a deduction) of up to 4.85% on contributions — one of the most generous state benefits in the country.
New York 529 Direct Plan — Best for NY Residents
New York's Direct Plan is managed by Ascensus and invests exclusively in Vanguard funds. The expense ratios for the age-based options run 0.12% to 0.16% depending on the portfolio — competitive but not quite as lean as Utah. What makes it compelling for New Yorkers is the state tax treatment: contributions up to $5,000 per year ($10,000 for joint filers) are deductible from New York state income.
At New York's top state income tax rate of 10.9%, a married couple contributing $10,000 saves $1,090 in state taxes the first year alone. That tax break turns a plan with slightly higher fees than Utah into a better overall deal for most New York residents in year one — and often for the first several years of the account.
Fund selection is pure Vanguard: total stock market index, total international, total bond market, and money market. The portfolios are clean and diversified, though you don't get the DFA factor exposure available in Utah. For most families, the Vanguard index approach is all they need.
One friction point: contributions from residents outside New York get no tax benefit, and the plan doesn't offer the same breadth of fund options as Utah. If you move out of New York, reassessing whether to keep or roll over to another plan is worth doing.
Nevada Vanguard 529 Plan — Best for Residents of States With No Income Tax
Nevada's College Savings Plans of Nevada include the Vanguard 529 option, offered directly through Vanguard's platform. The expense ratios on age-based portfolios land at 0.14% to 0.18% — slightly higher than Utah's Vanguard portfolios, though the fund lineup is nearly identical.
The plan's logic becomes clear for residents of states with no state income tax: Florida, Texas, Washington, Nevada itself, Wyoming, South Dakota, Alaska, and Tennessee. If you pay no state income tax, there's no tax deduction to chase. Your decision becomes purely about fees and fund quality — and Nevada Vanguard holds up well on both.
The existing Vanguard relationship is a perk for investors who already use Vanguard's brokerage. The 529 account appears in the same dashboard as your IRA and taxable accounts. Minimum initial contribution is $3,000, which is higher than Utah or New York — a potential barrier for parents starting early with smaller contributions.
For residents in states with income tax and a decent state plan, there's limited reason to choose Nevada over Utah. The fee difference is small and Nevada's minimum is more restrictive. But if you're in a no-income-tax state and already use Vanguard, this is a frictionless choice.
Illinois Bright Start 529 — Best for Illinois Residents
Bright Start is managed by Union Bank & Trust and offers 24 investment options — the most varied of the five plans reviewed. Options include age-based portfolios, individual index funds, actively managed funds, and a principal protection fund. The expense ratios on index options run 0.10% to 0.18%, competitive with the field.
The state tax deduction is the centerpiece for Illinois residents: contributions up to $10,000 per year ($20,000 for joint filers) are deductible from Illinois state income. Illinois has a flat income tax rate of 4.95%, meaning a couple contributing $20,000 saves $990 — every year they contribute. That recurring benefit is powerful, especially in the early years when balances are smaller and investment returns have less impact.
The broader fund menu cuts both ways. More options means more flexibility, but it also means more rope to hang yourself with if you pick an actively managed fund with a 0.50%+ expense ratio. Stick to the index tracks and the fees are excellent. Wander into the active fund menu and your cost advantage over lower-fee plans narrows fast.
Illinois residents in other states should note: if you move, the tax deduction stops. The account remains valid and portable, but the ongoing Illinois tax benefit is only available to Illinois taxpayers.
California ScholarShare 529 — Best for California Residents
ScholarShare 529 is managed by TIAA-CREF and offers expense ratios from 0.09% to 0.16% on index options — the lowest floor in this comparison. The TIAA Social Choice investment option (0.19%) adds a socially responsible portfolio that the other plans don't offer, which matters to some families.
Here's the California quirk that surprises almost everyone: California offers no state income tax deduction for 529 contributions. That's right — in the state with one of the highest marginal income tax rates in the country (up to 13.3%), the 529 tax deduction is zero. California residents get federal tax-free growth and federal tax-free withdrawals for qualified expenses — same as everyone else — but no state deduction. That's a significant miss compared to what New York or Illinois residents enjoy.
The absence of a California deduction means the plan's main selling points are the low expense ratios (genuine), TIAA management (solid if you're already a TIAA investor), and the convenience of a state-run plan. Out-of-state residents have no compelling reason to choose ScholarShare over Utah my529 — the fees are similar and Utah offers DFA fund access.
Account minimum is $25, making it accessible for families starting with small monthly contributions. Automatic investment plans are available starting at $15/month — useful for parents who want to dollar-cost average from early in a child's life.
