Sunday, February 24, 2008

529 plans

well, it's time for me to open and start contributing to a 529 plan for the new addition to my family. after some deliberating, i've decided to go the savings route rather than the pre-paid. the 529 college savings plan allows after-tax contributions into a savings vehicle that grows tax free when used for college. this is good stuff for something that i am going to have to pay for anyway.

there are also pre-paid tuition plans covered under the 529 tax code, but i feel that they are more rigid and limit your choices down the road.

in researching this, i found a great comparison tool that helped me out to arrive at the utah 529 plan (you don't have to live in the state to sign up, in most cases) -- it's got a low expense ratio index fund that i'm going to go with.

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