When my first kid was born, someone told me to open a 529 plan529 plan:A state-sponsored education savings account. Money grows tax-free, and withdrawals are federally tax-free when spent on qualified education expenses.Learn more →. I nodded, said "yeah totally," and then didn't do it for 18 months because I had no idea which one to pick.
There are over 100 different 529 plans. Every state has at least one. Some are great. Some charge fees that eat your returns alive. The difference between a good plan and a bad one can cost you tens of thousands of dollars over 18 years.
I spent a weekend comparing them so you don't have to. Here's what matters.
The short answer
Utah my529 is the best pick for most dads. It has some of the lowest fees of any 529, low-cost index fund options, and is open to residents of any state.
If you want a simple 'set it and forget it' plan with just three age-based options, go with Nevada Vanguard 529.
How much should you save?
Plug in your kid's age and we'll tell you how much to put away each month.
Open the 529 calculatorQuick comparison
| Plan | Total fees | Index funds | Best for |
|---|---|---|---|
| Utah my529 Top pick | 0.10-0.45% | Vanguard, DFA and others | Best overall, any state |
| Nevada Vanguard 529 | 0.13-0.17% | Vanguard | Simplest setup |
| New York 529 Direct | 0.12-0.17% | Vanguard | NY residents (tax deduction) |
| California ScholarShare | 0.08-0.43% | TIAA-CREF | CA residents |
| Illinois Bright Start | 0.07-0.37% | Vanguard | IL residents (tax deduction) |
Dad Math: How We Ranked These
Every ranking on Dadzilluh uses a simple scoring system. No black boxes. Here's what we weighed:
Utah my529
Best for: Any family in any state. The gold standard.
✓ Among the lowest fees of any 529 plan
✓ Low-cost index funds from Vanguard and other managers
✓ Customizable age-based portfolios
✓ Open to residents of any state
— No state tax deduction unless you live in Utah
— So many options it can feel overwhelming
— Website design is... functional
Best for: Families who want 'set it and forget it' simplicity.
✓ Three simple age-based options (that's it)
✓ All Vanguard index funds
✓ Very low fees
✓ Clean, simple interface
— Fewer investment choices than Utah
— No state tax deduction for non-Nevada residents
— Can't customize much beyond the three options
Best for: New York residents who want the tax deduction.
✓ Up to $10K state tax deduction for NY residents ($5K single)
✓ Vanguard index funds
✓ Competitive fees
✓ Age-based and individual fund options
— Tax deduction only matters for NY taxpayers
— Not as many fund choices as Utah
— Slight fee edge to Utah on some portfolios
Do you even need a 529?
If you plan to help pay for your kid's college, yes. The tax benefits are real. Your money grows tax-free, and withdrawals for qualified education expensesQualified education expenses:What 529 money can be spent on tax-free: college tuition, fees, books, required supplies and equipment, and room and board for students enrolled at least half-time. K-12 tuition and some other costs qualify with limits. are tax-free too.[1] That's a better deal than a regular brokerage account where you'd pay capital gains taxTax on the profit when you sell an investment for more than you paid. Long-term (held 1+ year) rates are 0%, 15%, or 20% depending on income. Short-term gains are taxed as regular income. on the growth.
How much difference does that make? If you invest $300/month for 18 years at a 7% return, you'll have about $130,000. In a taxable account, you'd owe roughly $10,000-15,000 in capital gains tax on that growth. In a 529, you owe $0. That's a free semester of college just from the tax benefit.
What if my kid doesn't go to college?
This used to be a real concern. Starting in 2024, you can roll unused 529 funds into a Roth IRAA retirement account funded with after-tax money. The big benefit: all growth and withdrawals in retirement are completely tax-free. No taxes ever again on that money. for the same beneficiary, up to $35,000 lifetime.[2] The rules are strict: the 529 must have been open at least 15 years, money contributed in the last five years (and its earnings) cannot move, each year's rollover counts against that year's Roth IRA contribution limit, and the beneficiary needs earned income at least equal to the rollover.[3] So if your kid gets a scholarship, goes to trade school, or skips college entirely, the money isn't trapped. It becomes retirement savings.
You can also change the beneficiary to another family member at any time. Second kid, niece, nephew, even yourself if you want to go back to school.
How much should you save?
The College Board puts the average 2025-26 budget for an in-state student at a public four-year school at $30,990 a year, before financial aid: tuition and fees average $11,950, and the rest is housing, food, books and transportation.[4] Four years at that rate is about $124,000. Private colleges cost much more, though more students there get grant aid.
You don't have to cover 100%. Even saving 50-70% puts your kid in a massively better position than most. Use the 529 calculator to see what monthly contribution gets you to your target.
About these links: This page contains informational links to 529 plan websites. Dadzilluh does not currently earn commissions on 529 plan signups. We include this topic because it's one of the most important financial decisions young dads make. Rankings use Dad Math. Fee ranges are approximate and change; confirm them in each plan's current program description.[5]
References
- IRS, Publication 970: Tax Benefits for Education (Chapter 7, Qualified Tuition Program). irs.gov/publications/p970
- SECURE 2.0 Act of 2022, Section 126 (rollovers from 529 plans to Roth IRAs), Division T of the Consolidated Appropriations Act, 2023 (Pub. L. 117-328). congress.gov/bill/117th-congress/house-bill/2617
- Vanguard, 529-to-Roth IRA rollover rules. investor.vanguard.com/investor-resources-education/education-college-savings/529-roth-rollover
- College Board, Trends in College Pricing and Student Aid 2025. research.collegeboard.org/trends/college-pricing/highlights
- my529, Fees and Expenses; SEC Investor.gov, An Introduction to 529 Plans. my529.org/start/fees-and-expenses/
