Hawaii 529 Plan And College Savings Options
Hawaii has a 529 plan called Hawaii's College Savings Program or HI529 that can help you save for college. Hawaii does not have a 529 ABLE program.
If you live in Hawaii, these might be good options for you to save for college.
These programs are designed to help make college more affordable - so that you can get the education you need. By saving for college early on, you can make paying for college easier down the road.
If you're not quite sure how 529 plans work, check out this starter guide to What Is a 529 Plan?
There is also a specific order of operations to save for college that we recommend families follow. These programs are specific to the State of Hawaii. Each state has different rules when it comes to 529 plan savings.
Average Cost Of College In Hawaii
When saving for college in Hawaii, it's important to take into consideration the cost of attendance in the state. If you choose to go to an out-of-state school, you need to look at the average cost of attendance in that state.
There are 27 colleges and universities in the State of Hawaii.
The total average cost of college (Cost of Attendance) in Hawaii for in-state residents is $20,928 for 2020. This includes tuition, room and board, books and supplies, and other expenses.
For just tuition alone, the average undergraduate tuition for in-state residents is $5,016 for 2020. The cost of tuition in Hawaii has been rising at about 1% per year.
See how this compares to the average cost of college here. Keep in mind the average student loan debt by graduating class here.
Explore the data here.
Hawaii 529 Plan Tax Information
Tax savings is one of the big benefits of using a 529 plan to save for college. On a federal-level, there is no tax savings for contributions, but qualified distributions are tax-free.
Here are the special tax benefits and considerations for using a 529 plan in Hawaii.
Hawaii is one of the states that offers no incentives for participating in a 529 college savings plan.
Maximum: Accepts contributions until all account balances for the same beneficiary reach $305,000.
Hawaii follows federal tax treatment of rollovers.
Qualified distributions from an Hawaii and non-Hawaii 529 plan are tax-free.
Hawaii does not conform with Federal law in regards to using a 529 plan for K-12 tuition. See this guide: Using a 529 Plan For Elementary and High School Private Education.
Hawaii does not conform with Federal law for using a 529 plan for student loans.
Non-Qualified Distributions Taxes, Penalties, Recapture
A non-qualified withdrawal from a Hawaii 529 plan is subject to state income tax.
Hawaii 529 College Savings Plan Options
Hawaii has one 529 plan option - one consumer plan.
Hawaii's College Savings Program (HI529)
The HI529 Plan is the name of Hawaii's 529 Plan. This plan offers a variety of investment options, including age-based portfolios that become more conservative as the child approaches college, and static investment fund options.
The funds offered include Vanguard.
There is an annual account maintenance fee of $20, which is waived for Hawaii residents.
There is a program management fee of 0.55%.
The underlying funds all charge expense ratios from 0.03% to 0.11% depending on the investment option.
Who Should Use It:
We don't recommend the HI529 plan. There are no tax benefits, and the fees are higher than average. Consider a top state or use a tool like CollegeBacker to save for college.
Hawaii 529 Able Plan Options
529A Able accounts are accounts designed to help those with disabilities escape poverty and save for themselves. Learn more about 529A Able Plans here.
Sadly, Hawaii is one of the few states that doesn't offer an ABLE plan.
Other Programs To Save For College
A 529 plan is one way to save for college. Remember, we have a full guide on our approach to college savings here - and it helps you find other options.
If you're looking for ways to boost your college savings, check this out:
CollegeBacker is one of our favorite ways to save for college because they make gifting for college so easy. You can setup an account, link your 529 plan (in most states), and get a unique URL that you can share with friends and family to save for your children's college.
Plus, they have Backer Bucks, which allow you to earn rewards and rebates for the shopping you already do - directly deposited into your children's 529 plan.
Hawaii Financial Aid
Using a 529 plan isn't the only way to save money for college. Each state typically offers a variety of financial aid programs for their residents. These include scholarships and grants, and sometimes unique forgivable student loan opportunities.
Check out the list of Hawaii Student Loan and Financial Aid Programs.
Return to the full list of 529 Plans By State.