Go for the slam dunk Recent enhancements to 529 savings plans make them the obvious choice for college savers. Investments grow free of federal tax, and withdrawals used to pay for college are tax-free as well.
Look homeward first Some states offer a full or partial tax deduction for contributions made to an instate 529 plan. Find out your state's policy at finaid.org.
Keep your expenses low If your state offers no tax break or the annual expense fee is more than 1 percent, consider investing in an out-of-state plan with lower costs. A solid choice: the Utah Educational Savings Plan.
