DE529 Sees Improved Education Savings Plan Rating

Morningstar rating increased from Bronze to Silver in 2019

Following assessments and interviews, Morningstar, the nation’s premier plan rating group, has upgraded the DE529 plan from a Bronze to a Silver ranking. Delaware now joins an elite group of 13 Silver-rated plans.

“Through this elevated ranking, the leadership of the Plans Management Board and the hard work of our team are being noticed nation-wide for the service it provides residents,” said Treasurer Davis. “Being able to reduce our fees will make a big difference for participants and prospective plan-holders, and we hope to go for Gold in the future.”

A key component of Delaware’s high score was due to its administration – phasing out more expensive investment selections and adding a new offering of a blended investment option, which allows the accountholder to engage in both active and passive investment management. Additionally, DE529 is one of the lowest-cost educational investment options, and recently reduced administrative fees.

Morningstar conducts annual reviews of 62 plans, analyzing multiple categories within the given plan, as well as its management. Scores indicate a review of the plans’ investment options, management, contracted relationships, investment performance, and overall price of the plan. Only four plans receive a Gold rating from Morningstar.

Delaware’s 529 is a tax-advantaged savings plan that is available to the public, easy to open, and offer investment options so that savings may grow over time until they are used for associated costs including tuition, books, housing, apprenticeships and more. Learn more at 529.Delaware.Gov.


Fewer Fees for Education Savings with DE529

State continues to have one of the lowest-cost investment plans

Treasurer Colleen C. Davis announced today a reduction in fees for Delaware’s 529 Education Savings Plan. Already one of the nation’s lowest-cost savings plans, the reduction is estimated to save participants nearly $87,000 total each year and further incentivize new account openings in the Delaware plan.

“Helping our residents spend less to save is so important. Education is already expensive, and now participants can keep more of their investment earnings to use towards those costs,” said Treasurer Davis. “With no minimum to open an account, and some of the lowest fees nationwide, we’re working to make sure that people of all income levels can save for a better future.”

Fees vary based on the participant’s investment strategy and are collected to administer the plan. Participants do not need to take any action for the fee reduction, which began October 1.

The number of accounts in the Delaware 529 Plan have grown by 4% over the last three years, outpacing the industry nationwide. Nearly 22,000 accounts in the plan hold more than $686 million in investments.

Delaware’s 529 is a tax-advantaged savings plan that is available to the public, easy to open, and offer investment options so that savings may grow over time until they are used for associated costs including tuition, books, housing, apprenticeships and more. Learn more about at 529.Delaware.Gov.