The Best 529 Plans for Education Savings in 2025: What Actually Matters

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If we’re being real, saving for college feels like trying to hit a moving target. Costs keep rising, tax rules change, and suddenly you’re Googling “best 529 plans” at 2 a.m. while your toddler watches cartoons. I’ve been there. I’ve also spent way too many hours comparing plans, reading Morningstar reports, and talking to financial advisors who use words like “glide path” like it’s common dinner conversation.

So let’s cut through the noise. In 2025, there are a handful of 529 plans that consistently earn top marks from experts. But here’s the thing: the “best” plan isn’t always the one with the flashiest rating. It’s the one that fits your life, your goals, and your tolerance for paperwork.

Why 529 Plans Still Matter

Before we dive into the rankings, let’s get real about why 529 plans are still the gold standard for college savings. They offer tax-free growth and withdrawals for qualified education expenses, which is a big deal. If you’re saving for a kid’s future, or even your own grad school, a 529 plan is one of the most powerful tools out there.

But—and this is a big but—not all 529 plans are created equal. Some have sky-high fees, confusing investment options, or limited state benefits. The best ones are low-cost, easy to use, and offer flexibility for different types of savers.

The Gold Medalists: What Sets Them Apart

Morningstar’s 2025 ratings are the most respected in the industry, and this year, five plans earned the coveted Gold Medalist rating: Alaska, Illinois, Massachusetts, Pennsylvania, and Utah. These plans have held their top spots for a reason—they’re consistently well-managed, cost-effective, and offer a wide range of investment options.

Here’s a quick look at what makes each of these plans stand out:

State	Plan Name	Key Features
Alaska	T. Rowe Price College Savings Plan	Managed by T. Rowe Price, strong research team, low fees
Illinois	Bright Start Direct-Sold College Savings Plan	Wide range of investment options, cost-effective, managed by TIAA-CREF
Massachusetts	U.Fund College Investing Plan	Managed by Fidelity, robust research, excellent oversight
Pennsylvania	PA 529 Investment Plan	Low fees, diverse investment choices, strong state oversight
Utah	my529 Plan	Custom age-based portfolios, Vanguard and DFA funds, proactive fee reduction

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What Makes These Plans So Good?

Let’s break down what actually matters in a 529 plan. It’s not just about the rating—it’s about the details that affect your day-to-day experience.

1. Low Fees: This is the biggest factor. High fees eat into your returns over time. The Gold Medalist plans all have low expense ratios, which means more of your money stays in your account.

2. Investment Options: The best plans offer a variety of investment choices, from age-based portfolios to custom options. This lets you tailor your savings to your risk tolerance and goals.

3. State Benefits: Some states offer tax deductions or credits for contributions to their 529 plans. If you live in a state with good benefits, it’s usually worth considering your own state’s plan first.

4. Ease of Use: A plan that’s easy to open, manage, and switch is a huge plus. The top-rated plans are known for their user-friendly platforms and responsive customer service.

5. Oversight and Transparency: The best plans have strong state oversight and multiple layers of independent audits. This gives you peace of mind that your money is being managed responsibly.

My Personal Experience

I opened a 529 plan for my niece a few years ago, and I’ll admit, I was overwhelmed at first. I started with my own state’s plan, but after doing some research, I switched to Utah’s my529 plan. The reason? It offered lower fees, more investment options, and the ability to build custom portfolios. Plus, the platform was super easy to use.

Switching plans was a breeze—Morningstar’s report notes that you can switch plans once every 12 months without any tax consequences. That flexibility is a game-changer, especially if your needs change over time.

What I’d Do Differently

Looking back, I wish I had spent more time comparing plans before making my initial choice. I also wish I had paid closer attention to the state benefits. If I had lived in a state with a generous tax deduction, I might have stuck with my own state’s plan.

Here are a few things I’d do differently if I were starting over:

Research state benefits first. If your state offers a tax deduction or credit, it’s usually worth considering your own state’s plan.
Compare fees carefully. Even a small difference in fees can add up over time.
Don’t be afraid to switch. If you find a better plan, you can switch once a year without penalty.
Take advantage of custom options. If you’re comfortable managing your own investments, custom portfolios can give you more control.

Other Highly Rated Plans

While the Gold Medalist plans are the top tier, there are several other plans that earn Silver or Bronze ratings from Morningstar. These plans are still excellent choices and may offer unique benefits depending on your situation.

Some notable mentions include:

Ohio’s CollegeAdvantage 529 Plan: Offers a diversity of investment options and up to $4,000 in state tax deductions for Ohio residents.
Wisconsin’s Edvest 529 Plan: Available to residents of any state, with age-based options and up to $5,130 in state tax deductions for Wisconsin residents.
West Virginia’s Smart529 Plan: Open to residents of any state, with some of the lowest annual fees among 529 plans.
California’s ScholarShare 529 Plan: Offers a wide variety of age-based funds and passive funds at low costs, though contributions are not deductible on state income taxes for California residents.

Mistakes to Avoid

Here are a few common mistakes to watch out for when choosing a 529 plan:

Ignoring state benefits. If your state offers a tax deduction or credit, it’s usually worth considering your own state’s plan.
Overlooking fees. High fees can eat into your returns over time.
Not reviewing your plan regularly. Your needs may change over time, so it’s important to review your plan periodically.
Assuming all plans are the same. Not all 529 plans are created equal. Take the time to compare plans and choose the one that’s right for you.

The Bottom Line

Choosing the right 529 plan is about more than just picking the one with the highest rating. It’s about finding a plan that fits your life, your goals, and your tolerance for paperwork. The Gold Medalist plans are a great place to start, but don’t be afraid to explore other options and switch plans if your needs change.

Saving for college is a long-term commitment, but with the right plan, you can set yourself and your family up for success. And remember, it’s never too late to start—or to switch to a better plan.

Final Thoughts

If you’re feeling overwhelmed by the choices, start with the top-rated plans and work your way down. Pay attention to fees, investment options, and state benefits. And don’t be afraid to ask for help—financial advisors and online resources can be invaluable.

Saving for college is one of the most important things you can do for your family’s future. With the right 529 plan, you can make that future a little brighter.

What’s your experience with 529 plans? Have you found a plan that works for you? Share your thoughts in the comments below.