Start saving today with a Fidelity Massachusetts 529 Plan
Contributions are deductible from your state taxes!
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Helping families save for college since 1999
Savingforcollege.com is an unbiased, independent resource for parents and financial professionals, providing them with information and tools to understand the benefits of 529 college savings plans and how to meet the challenge of increasing college costs.
Why a 529 plan?
Tax-Free Earnings
Earnings with a 529 plan grow tax deferred and are eventually tax-free when used to pay for qualified higher education expenses.
Massachusetts State Tax Benefit
Contributions to the Massachusetts 529 Plan of up to $2,000 per year for married couples filing jointly are deductible in computing your Massachusetts taxable income.
Low Financial Aid Impact
Account balances are assessed at a maximum of 5.64%
Retain Control
The beneficiary has no legal rights to the funds so the account owner can rest assured the money will be used for its intended purpose.
†Advertiser Disclosure
DISCLOSURE
Assumes savings of $2,000/year at 7% rate of return, 15% capital gains tax and a $150,000 household income (married filing jointly)
FOOTNOTES
1. State tax benefit: This is the maximum amount of annual contributions that can be claimed on a state tax return for a couple that is married filing jointly.
2. Ratings: The 5-Cap Ratings represent our opinion of the attractiveness of each 529 plan, relative to all other 529 plans, based on the many factors that we feel are important. To see our 5-cap methodology please visit our 5-cap rating system criteria. The performance score is derived from the
analysis of performance as part of Savingforcollege.com’s 5-Cap Rating. The fee score is derived
from the analysis of costs done as part of Savingforcollege.com's 5-Cap Rating. This analysis
compares total average asset-based expenses of the plan to other 529 savings plans.
†ADVERTISER DISCLOSURE
We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.
529 vs. Other College Savings Vehicles
U.Fund College Investing Plan
Massachusetts' U.Fund College Investing Plan, a Fidelity-managed 529 plan follows the same approach as other Fidelity plans in Arizona, Delaware and New Hampshire. It features three age-based options; one using Fidelity Series actively managed funds; one using Fidelity Series index funds; and a third using a combination of the two. The plans also offer 11 static options, and one option that invests in an interest-bearing deposit account.
$2,000/yr
Overall Rating
5 of 5
Fee Score
4.5 of 5
Performance
5 of 5
About this Plan
529 Plans allow you to save for college tax-free, making it the ideal college savings solution compared to other investment vehicles. Plus, you get up to a $2,000 state-tax benefit every year as a Massachusetts resident for contributing to your state’s 529 plan!
$74,180
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