A Guide to Dimensional Fund Advisors 529 for College Savings

Dimensional Fund Advisors 529 plans offer a unique approach to college savings, allowing you to invest in a diversified portfolio of index funds.

The plans are designed to be low-cost, with fees as low as 0.15% per year, making them an attractive option for families looking to save for college.

You can contribute up to $15,000 per year per beneficiary, and the funds grow tax-free, meaning you won't have to pay taxes on the investment gains.

The plans are also designed to be flexible, allowing you to change your investment options at any time.

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Dimensional Fund Advisors 529 plans are available in 24 states and the District of Columbia. This means you have a wide range of options to choose from.

To get started, you can visit the website of each participating state to learn more about their 529 plans. Some popular options include Alabama's CollegeCounts 529, California's ScholarShare 529, and Florida's Florida 529 Savings Plan.

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Currently, three states include Dimensional strategies in one or more of their ABLE plans. These states are Maryland, Oregon, and Washington.

Here's a list of states with Dimensional strategies in their 529 plans:

Underlying expenses are a key factor to consider when investing in a 529 plan.

The Vanguard and Dimensional funds included in my529 charge an Underlying Fund Expense.

These fees are deducted from the applicable underlying funds and do not appear on your account statements.

The performance and market values of your account are net of any fund expenses.

The Underlying Fund Expenses for Vanguard and Dimensional funds are listed in the tables below.

These fees apply to the underlying investments in my529 and are subject to change.

You don't own shares in the underlying funds, so you won't see these fees on your account statements.

The fees are deducted from the funds before they're invested in your account.

This means the performance and market values of your account are already net of the fund expenses.

The Underlying Fund Expenses are an important consideration when evaluating the overall cost of investing in a 529 plan.

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Dimensional Fund Advisors (DFA) offers investment strategies in many 529 education savings plans. Currently, 24 states and the District of Columbia include DFA strategies in one or more of their plans.

You can access DFA's investment approach in these plans, which offer a tax-favored way to save and invest for higher education. Any adult can open a 529 account, regardless of state residence, and contribute money on behalf of a named individual, such as a child or grandchild.

Here are some specific plans that include DFA strategies:

Some states also offer ABLE plans, which are designed for individuals with disabilities. Currently, three states include DFA strategies in one or more of their ABLE plans.