529 Plan Questions
October 17th, 2005
Question: Which college savings plan is the best?
My wife and I want to start a college savings plan for our 1 1/2 year old daughters. I understand each state has its own 529 Plan. In Illinois I am looking at the BrightStart plan. We would have approximately $100 a month automatically taken from the checking account and sent downstate to the BrightStart account where it is invested in various funds for us. My question- it was suggested to me by someone to check into Utah’s plan too, it is rated as one of the best in the country. Anybody know the difference? Any suggestions from parents putting money away for their kids’ college future? Any advice would be helpful.
Answer: I would go with your state’s plan because if Utah’s plan is attached to their schools the money saved up would not go far enough due to your daughter being an out of state student unless you plan on living in Utah during her high school years to establish her residency. However, before considering another state’s 529 Plan, I recommend reading the fine print of the program. In addition, I recommend joining UPromise because a portion of purchases of certain products will be placed into an account which could be converted into a 529 college savings plan.
ABC News – Don’t understand 529 plans? Answers to the most common questions
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