The country's largest 529 plan — the Virginia529 College Savings Plan — got even bigger this year, reaching $52 billion in assets and 2.3 million accounts as of May 31, state data show. Assets were $43 billion as of Nov. 30.
According to the College Savings Plans Network, the Richmond-based program represents 22% of the $227 billion in all U.S. 529 college savings plan accounts. Plans operated by New York and New Hampshire, with $17 billion and $13 billion in assets, respectively, as of Dec. 31, are the next biggest, according to the CSPN.
The Virginia plan has four options offered through financial advisers in partnership with American Funds managed by Capital Group Cos. Inc. Virginia529 officials on July 1 lowered administrative fees for the largest option, CollegeAmerica, which had $46 billion in assets as of May 31. Fees are scheduled to drop again when CollegeAmerica assets reach $70 billion.
This article originally appeared in the July 7, 2014 print issue as, "Virginia529 hits $52 billion in assets".