Texas ladies -529

[sookie]

The Texas Tuition fund ONLY works for schools in Texas. If your child decides to go to school in another state you'll only get the transfer value.

[Deleted]

I need to research this.

[formerlyak]

Does Texas offer tax benefits for residents who contribute to one of their two funds? If not, you can also look to see which states have 529 plans with better returns. I am in California and we get no tax benefit for contributing, so we invested in Nevada's plan because it was administered through a financial institution I like a lot and they get a great rate of return. I think I am averaging about 10% return a year right now.

There was a thread about this on MM recently if you do a search.

[SJ]

In general, I do not like the prepaid tuition plans as much as they have more restrictions than a regular 529.

Since there aren't any tax benefits, I wouldn't be tied to Texas plans. www.savingforcollege.com is a great resource to research the various options.

I would also make sure you are on track for retirement savings and taking advantage of other tax-deferred plans before turning to a 529.