Alaska 529 Plans

Alaska offers three 529 college savings plans.  But don't be fooled by the name of the main one - The University of Alaska College Savings Plan.  This plan allows you to save for college at any college or university, not just the University of Alaska.  It offers an added benefit of a "lock-in" price at University of Alaska, making it appealing to people thinking about attending that university.  The two other plans are T. Rowe Price College Savings Plan and John Hancock Freedom 529 plan.

University of Alaska College Savings Plan

The UA College Savings Plan is a 529 plan with an added benefit -- a price locking mechanism if you choose to use the money to attend The University of Alaska. 

Type: Direct sold.

Fund Family: T. Rowe Price

Minimums: To get started you can deposit $250 or set up a monthly payment plan of only $50.  The minimum subsequent contribution to Alaska's 529 plan is $50.

Maximum Contributions:  Currently, you can contribute up to $320,000 to your Alaska 529 plan.  Of course, your total amount in the plan can be higher as your investments grow.  529 plans typically increase the contribution limit over time, so you may be able to contribute more.

Tax Benefits:  Alaska does not have a state income tax.  However, Alaska residents can have 50% of their Alaska Permanent Fund Distribution (PFD) automatically contributed to the fund.

Residency: The UA College Savings Plan is open to all United States residents, not just those in Alaska.

You can learn more about the UA College Savings Plan at the official web site.

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T. Rowe Price College Savings Plan

The Alaska Education Trust also offers this 529 plan, which is very similar to the University of Alaska 529 plan but without the "lock-in" benefit.

Type: Direct sold.

Fund Family: T. Rowe Price

Minimums: To get started you can deposit $250 or set up a monthly payment plan of only $50.  The minimum subsequent contribution to Alaska's 529 plan is $50.

Maximum Contributions:  Currently, you can contribute up to $320,000 to your Alaska 529 plan. 

Tax Benefits:  Alaska does not have a state income tax.  You still get the federal tax benefits for investing in 529 plans.

Residency: The Alaska T. Rowe Price College Savings Plan is open to all United States residents, not just those in Alaska.

You can learn more about the T. Rowe Price College Savings Plan at the official web site.

John Hancock Freedom 529 Plan

The John Hancock Freedom 529 plan offered by the Alaska Education Trust is a unique 529 plan that lets you pick from fund options provided by a number of mutual fund companies.

Type: Advisor sold.  You must contact a 529 financial advisor to purchase this plan.

Fund Family: Multiple mutual fund companies

Minimums: Contact advisor

Maximum Contributions:  Contact advisor

Tax Benefits:  Contact advisor

Residency: Alaska's John Hancock Freedom 529 Plan is open to all United States residents, not just those in Alaska.

You can learn more about the John Hancock Freedom 529 Plan at the official web site.