529 Education Savings Plan


C

c_shah

I live in illinois have a 20 months old daugher. Thinking about using
Economic Stimulus rebate for 529 Education Savings plan. I do not know
more about 529 Plan (only thing I know money you put in 529 can be
used to pay college tution).

Radio here has frequents ads about illinois bright start but few years
ago what I heard that IL 529 (BrightStart savigns was worst in the
nation)

Any advise would be appreciated.

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K

kastnna

I live in illinois have a 20 months old daugher. Thinking about using
Economic Stimulus rebate for 529 Education Savings plan. I do not know
more about 529 Plan (only thing I know money you put in 529 can be
used to pay college tution).

Radio here has frequents ads about illinois bright start but few years
ago what I heard that IL 529 (BrightStart savigns was worst in the
nation)

Actually, Morningstar claims the Illinois plan has really turned it
around to become one of the best in the nation.

Here's a link to the article: http://news.morningstar.com/articlenet/article.aspx?id=234422
I think you need to be a member, but I also think it's free to join.

529 plans are great for education savings. Tax deferred growth and
federally tax free withdrawal for qualified higher education expenses.
You can change beneficiaries (if there's money left over due to
scholarships, not attending college, attending a cheaper than expected
college, etc...) and the money stays in YOUR control (unlike a UGMA/
UTMA).

I do not know if Illinois allows for a state tax deduction? If so,
that's a bonus.

My one caveat: make sure you take care of YOU first. Most of us here
advocate making sure your retirement fund is on track and any "bad
debt" is paid down before you begin college planning.

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
 

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