Savers can choose which state's 529 plan ( or plans ) they want to take advantage of and many states offer several plans to choose from.
Robb says the first variable families should consider when picking the right plan for them is if their local plan includes a state income tax benefit for residents.
"Everyone's situation is different, but 529 plans for most people are an excellent choice," says Cliff Robb, associate professor of personal finance at the University of Wisconsin, Madison.
First created in 1996 , 529 plans are state-sponsored investment accounts that savers can contribute to for a beneficiary's education expenses including tuition, fees, books, housing and technology.
"For example, ScholarShare 529 offers 19 investment options that are designed to help families with different savings goals and different management styles."
Robb, Cliff Robb, Julio Martinez, Martinez, it's, CSPN
University of Wisconsin, 529, Savings, District of Columbia, Savings Plans, National Association of State Treasurers