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College Savings Plan Gets Low Ranking

By Alabama Public Radio

Montgomery, AL – Alabama's college savings plan has been ranked as one of the nation's worst. The national mutual fund rating company Morningstar Fund Investor gave Alabama's Higher Education 5-29 Plan and a plan in Arizona the nation's lowest marks. Not surprisingly, Alabama officials are already disagreeing with the ranking. They say the state got many of the low marks because Alabama is the only state that did not give income tax breaks for plan withdrawals. State lawmakers have since passed a bill that makes those withdrawals tax deductible. State officials now say they believe the college savings plan will score higher next year.

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