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4 college savings plans get top Morningstar honors

4 college savings plans get top Morningstar honors

CREATED Oct 15, 2012

BOSTON (AP) -- College savings plans offered through the states of Alaska, Maryland, Nevada and Utah earned top marks from Morningstar in the company's annual update to ratings of so-called 529 plans.

These state-sponsored investment accounts permit withdrawals for college expenses to be made free of federal taxes.

Each of the four plans earning Morningstar gold-medal ratings on Monday also won top marks last year. The four are:

-- Alaska's T. Rowe Price College Savings Plan, managed by T. Rowe Price;
-- Maryland College Investment Plan, also from T. Rowe Price;
-- Nevada's Vanguard 529 Savings Plan, managed by Upromise Investments;
-- Utah Educational Savings Plan, managed by the agency of the same name.

Four other plans earned silver-medal honors from Morningstar. Nineteen plans were rated bronze, 33 "Neutral" and four "Negative."