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So I have a upromise account, had one for quite a while. I have some money sitting there now and I need to get it transferred out. I'm thinking a 529 plan, and when I go to set it up, theres a long list of available providers.

What do I need to know in picking one out? Is there a preferred in state vs out of state? Can I find something I can auto-withdraw my pay checks as well?

Thanks

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    Note that you are not obligated to put the Upromise money in a 529, nor any educational savings account.
    – duffbeer703
    Commented Nov 23, 2011 at 19:01

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529 Plans must be sponsored by a state. There are sometimes several plans sponsored by a state, but the trick is picking the plan with the lowest costs, just like any investment account.

Clark Howard has a nice guide and recommendations for picking 529 plans. If you live in a state on his honor roll, invest in that state plan for extra tax benefits. If you don't, invest in one of his dean's list plans.

You may invest in any plan from any state you like. You can buy the plan directly without the expense of a broker. Put the plan in your name and name the student as a beneficiary, do NOT put the plan in the student's name. This will help out when it comes time to apply for financial aid.

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