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I looked into 529 funds wanting a plan that let me choose varied mutual funds (including international, small cap,...) that were highly rated by Morningstar. I did not want someone else's idea of a generic "aggressive" or "conservative" portfolio. The closest I found was the Virginia plan that uses American Funds mutual funds. The majority in the plan are 4- or 5-star at Morningstar. The big drawback is that (nearly?) all the funds have loads, which I normally never pay. I couldn't decide if the loads were worth it for the favorable tax treatment. Right now my son's college money is in an UTMA and it has some losses carried over from past years, which means that, essentially, the gains until the account is back to break-even (which is coming close) will not give me significant capital gains to tax. When he reaches break-even I will have to decide what to do.

Has anyone else looked carefully at that Virginia plan? Has anyone found any others that match what I'm looking for (maybe some state's new plan)?
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