529 Education Savings Plan

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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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:

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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.