Kim Finkle, MBA, Staff Financial Advisor Having a conflict with your co-parent or partner? - Start Neutral Mediation

Understanding Wyoming's College Savings Landscape

Unlike most states, Wyoming doesn't have a 529 plan. This may seem like a disadvantage, but there are still ways to save for your child's college education. Let's explore some alternatives:

• UTMA/UGMA Custodial Accounts: These accounts allow you to invest on a minor's behalf. However, unlike 529 plans, funds can be used for anything, not just education. Earnings may also be taxed.
• Savings Accounts: A regular savings account won't offer tax benefits, but it's a good option for short-term savings goals.
• Out-of-State 529 Plans: Consider 529 plans from neighboring states like Colorado and South Dakota, or explore plans with attractive features from other states.

 

Choosing the Right Option for Co-parents

Divorce or separation can complicate college savings. Here's how co-parents can navigate these options:

• Open Communication: Discuss contribution amounts, investment strategies, and beneficiary designations openly with your co-parent to avoid future disputes.
• Legal Agreements: Consider including details about the college savings plan in your divorce decree or a separate agreement for clarity.
• Tax Implications: Be aware of tax implications for contributions and withdrawals, especially if one parent contributes more than the other. Consulting a financial advisor can be helpful.

 

Comparing Out-of-State 529 Plans (Colorado, South Dakota, Texas, Missouri, Oregon)

Since Wyoming doesn't have a 529 plan, let's compare plans from neighboring states (Colorado, South Dakota) and other popular options (Texas, Missouri, Oregon):

State	Investment Options	State Tax Benefit	Additional Benefits
Colorado	Variety of Options	In-state income tax deduction	None
South Dakota	Vanguard Target-Date Funds	Up to $4,000 tax credit	None
Texas	Multiple Portfolio Options	Up to $2,000 tax credit	Can be used for private K-12 tuition
Missouri	Vanguard Target-Date Funds	Up to $8,000 tax credit	None
Oregon	Various Investment Options	Up to $9,000 tax credit	None

Note: Tax benefits and contribution limits may change. Be sure to research the specific plan for the latest information.

 

Conclusion

While Wyoming doesn't have a 529 plan, divorced or separated parents have options to save for their child's education. Explore UTMA/UGMA accounts, savings accounts, and out-of-state 529 plans. Remember, open communication with your co-parent and consulting a financial advisor can be invaluable in navigating these strategies.

 

529 Plans By State

1. Alaska 529 Plan

2. Alabama 529 Plan

3. Arizona 529 Plan

4. Arkansas 529 Plan

5. California 529 Plan

6. Colorado 529 Plan

7. Connecticut 529 Plan

8. Delaware 529 Plan

9. Florida 529 Plan

10. Georgia 529 Plan

11. Hawaii 529 Plan

12. Idaho 529 Plan

13. Illinois 529 Plan

14. Indiana 529 Plan

15. Iowa 529 Plan

16. Kansas 529 Plan

17. Kentucky 529 Plan

18. Louisiana 529 Plan

19. Maine 529 Plan

20. Maryland 529 Plan

21. Massachusetts 529 Plan

22. Michigan 529 Plan

23. Minnesota 529 Plan

24. Mississippi 529 Plan

25. Missouri 529 Plan

26. Montana 529 Plan

27. Nebraska 529 Plan

28. Nevada 529 Plan

29. New Hampshire 529 Plan

30. New Jersey 529 Plan

31. New Mexico 529 Plan

32. New York 529 Plan

33. North Carolina 529 Plan

34. North Dakota 529 Plan

35. Ohio 529 Plan

36. Oklahoma 529 Plan

37. Oregon 529 Plan

38. Pennsylvania 529 Plan

39. Rhode Island 529 Plan

40. South Carolina 529 Plan

41. South Dakota 529 Plan

42. Tennessee 529 Plan

43. Texas 529 Plan

44. Utah 529 Plan

45. Vermont 529 Plan

46. Virginia 529 Plan

47. Washington 529 Plan

48. West Virginia 529 Plan

49. Wisconsin 529 Plan

50. Wyoming 529 Plan

51. DC 529 Plan

Warning:  This post is neither financial, health, legal, or personal advice nor a substitute for the advice offered by a professional. These are serious matters, and the help of a professional is recommended as it can impact your future.