Investing in qualified tuition plans, commonly known as 529 Plans, is a popular way of saving for a child’s college education. Created under Section 529 of the Internal Revenue Code, these state or university-sponsored plans can greatly help in paying for the college education expenses of the account holder’s beneficiary.
Not all 529 Plans, however, are created equal. Chicago-based financial research firm Morningstar annually rates 529 Plans, mainly according to required fees, quality of supervision or oversight, and investment options. From their latest evaluation, it appears the size of a plan’s assets does not necessarily determine its favorability.