Written on Thursday, May 01, 2008 by Jessica
I feel somewhat like a responsible parent today, as I have just opened a 529 college savings account for Seth.
We went with Michigan's plan because it has low fees and for the tax advantages. It wasn't among Morningstar's top-five plans, but they did commend it for low fees and reasonable performance. Because we're Michigan residents, it tax deductible at the Federal and state level and we're also entitled to a small state match.
We thought hard about Michigans prepaid tuition plan (where you buy tomorrow's tuition at today's rates), but that limits Seth to a Michigan college and university. What if my little prodigy wants to go to MIT?