View Full Version : Prepaid choice for out of state?


Unregistered
We are interested in investing in 529 plans for our two children (ages 5 & 9) and live in Alabama. We want to diversify between a prepaid plan and a savings plan. Because Alabama does not offer guarantee to cover costs, this is not an option. I cannot find a listing of state prepaid plans which are open to out of state and their pros and cons. Thanks for any advice.

TJB_NC
Not all prepaid programs offer state guarantees - I don't know the percentage, but I am under the impression that most do not.

But AL is currently the only prepaid plan that is open to nonresidents. The CO prepaid plan (a unit-based plan) was open to nonresidents, but the plan has been closed to all contributions since this summer. I don't know whether it will remain open to nonresidents when it reopens later this year. But it also did not offer a state guarantee.

TJ