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My529 vs. Virginia529: Which College Savings Plan is Right for You?





My529 vs. Virginia529: Which College Savings Plan is Right for You?

When choosing a 529 college savings plan, you are not limited to the plan offered by your home state.1 Both My529 (Utah's plan) and Invest529 (Virginia's plan, one of the programs offered by Virginia529) are nationally recognized, highly-rated direct-sold plans that are available to anyone in the country.

Deciding between them often comes down to your state of residence, investment preferences, and specific fee structure.

Here is a side-by-side comparison to help you choose the best fit for your financial goals.

I. The Residency Factor: State Tax Benefits

The most significant differentiator is the state income tax benefit, which generally only applies if you live in the sponsoring state.2

FeatureMy529 (Utah)Invest529 (Virginia)
Eligibility (General)Open to all U.S. residents.Open to all U.S. residents (except for the Tuition Track Portfolio).
Utah ResidentsAccount owners get a state income tax credit on contributions, up to a certain limit per beneficiary.No tax benefit available.
Virginia ResidentsNo tax benefit available.Account owners can take a state income tax deduction on contributions up to $4,000 per account per year (with unlimited carryforward).
Non-ResidentsNo state tax benefit from Utah or Virginia.No state tax benefit from Utah or Virginia.
Action StepIf you live in Utah or Virginia, your in-state plan is likely the most valuable choice due to the immediate tax break.

II. Investment Options and Flexibility

Both plans offer flexibility, but they use different underlying fund managers and have unique features.

FeatureMy529 (Utah)Invest529 (Virginia)
Target Enrollment Date OptionsYes. Portfolios automatically become more conservative as the beneficiary ages.Yes. Features similar age-based asset allocation paths.
Static & Individual OptionsYes. Offers a broad selection of funds from managers like Vanguard, Dimensional (DFA), and a PIMCO-managed stable value fund.Yes. Offers a variety of single-fund and multi-fund options, primarily using Vanguard, T. Rowe Price, and other managers.
Unique FeatureCustom Age-Based Portfolios: Allows you to design your own glide path using approved funds—a very high degree of customization.Tuition Track Portfolio (VA Residents Only): A unique option designed to keep pace with tuition inflation at Virginia public colleges.
Investment ChangesYou are generally allowed two investment option changes per beneficiary per calendar year.You are generally allowed two investment option changes per beneficiary per calendar year.

III. Fees and Minimums

Both plans are known for being low-cost, which is a major reason they are often recommended to non-residents. Lower fees mean more of your money is invested for your child.3

FeatureMy529 (Utah)Invest529 (Virginia)
Minimum to Open AccountNone ($0)As little as $10
Minimum ContributionNone ($0)None (for one-time or recurring)
Administrative FeesGenerally among the lowest in the industry.Generally among the lowest in the industry.
Total Expense Ratios (TERs)Highly competitive, typically ranging from $0.11% to 0.12% for Age-Based options.Highly competitive, with some index options starting as low as 0.02%.

Summary and Recommendation

The best plan for you depends on where you live and your investing style:

✅ Choose My529 (Utah) If:

  • You live in Utah and want the benefit of the state income tax credit.4

  • You want access to funds from both Vanguard and Dimensional (DFA), which is a rare combination among 529 plans.

  • You are a sophisticated investor who would utilize the Custom Age-Based Portfolio feature.

✅ Choose Invest529 (Virginia) If:

  • You live in Virginia and want the benefit of the state income tax deduction (up to $4,000 per account per year).5

  • You prioritize the absolute lowest possible fees, as some of their index fund options have incredibly low expense ratios.

  • You are a Virginia resident interested in the unique, inflation-protecting Tuition Track Portfolio.6

For a Non-Resident (You don't live in UT or VA):

The difference between the two plans is very minor. Both are Gold-rated (My529) or highly rated (Invest529) by Morningstar and offer low fees and excellent investment choices. Your choice should come down to which plan's specific investment offerings and interface you prefer.

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