Alaska
Plan Name:
College Savings Plan
Overall Rating (Alaska Residents):
9 / 10
Overall Rating (Non-Residents):
9 / 10
Overall Plan Review:
First off, it’s important to recognize that the state of Alaska offers multiple Section 529 Savings plans. Some, like the T. Rowe Price College Savings Plan, should be given serious consideration by investors. Others should probably be avoided at all costs.Alaska’s T. Rowe Price College Savings Plan offers a great combination of low initial requirements, high lifetime maximums, and a great overall cost structure. The cost structure is especially important with Section 529 plans, as many of them build in exorbitant costs that inhibit long-term growth.
Ideal investor:
This plan is ideal for anyone who wants a simple plan that provides a solid opportunity for growth. It’s also a great choice for fans of the T. Rowe Price family of funds.The plan may also be a strong choice for parents or grandparents looking to take advantage of the estate planning benefits of Section 529 plans, due to its high lifetime contribution limit.
Alaska residents will want to weigh the benefits of this plan versus Alaska’s prepaid tuition plan, which is available only to in-state residents.
In-State Benefit:
Alaska does not have a personal income tax, so there is no benefit to Alaska residents to use this plan over another state’s plan. Alaska residents should evaluate whether or not any Section 529 savings account makes more sense than Alaska’s Advanced College Tuition (ACT) program that lets you prepay tuition.
