The College Savings Plan Network is working to standardize 529 plan disclosures to make it easier for investors to research and compare the plans.
Now, there are 85 plans nationwide, and the original plan of one plan for each state “has gone out the window,” says Bruce Harrington, VP and director of product development and marketing at MFS Investment Management. Many states have multiple 529 programs, he says, so for the average investor, deciding which plan to use is “very complicated.”
And there are no “standard rules that govern the development of 529 plan offering documents,” Harrington says. “Unlike starting a new mutual fund and following the SEC guidelines,” there are no guidelines for 529s, so “what you get is 85 different variations of offering documents.”