While Section 529 lays down the basic rules for what all qualified plans must provide, within those parameters the states are allowed a wide degree of latitude in fashioning their particular programs.

Different states are introducing their Section 529 Plans so frequently, and once started are changing them so often, that the best way to obtain up-to-date and generally reliable information on the features of each state’s Section 529 Plans is to start by going to the web-site Savingforcollege.com, www.savingforcollege.com .

Apart from learning the details of each state’s plans, it would also be helpful to know what features for a particular family may be more important than others. The following is a list of the criteria that a family or its advisors should consider when evaluating whether to use a particular state’s Prepaid Tuition Plan or Education Savings Plan, or to go with the Independent Prepaid Tuition Plan.

Residency requirement for owner and/or beneficiary

Age limitation on beneficiaries

Minimum and maximum contribution limits

Fees charged for setting up the account, and any on-going expenses

Educational expenses covered (i.e., only tuition and fees, or room and board, books, supplies, and others)

Limitations on changing beneficiaries or transferring ownership, and the fees for processing such change

Rollover limitations if the owner wants to transfer the account to another state

Steps necessary to obtain a refund

Any penalties on non-qualified distributions or refund

Minimum period following a contribution before funds can be withdrawn

Identity of investment manager(s) and their track record

Types of investment options available

Whether an account must be established through a broker (more expensive) or whether an individual can set up an account directly

How are non-residents treated as compared to residents

Restrictions or charges if an owner wants to change the investment mix within the same state plan

Specifics of how an aged-based or years-to-enrollment investment strategy works

Fees and expenses charged by the manager

Expense ratio for the each of the mutual funds offered

Whether the state guarantees the rate of return and principal with the full faith and credit of the state.

Limits on education institutions where the credits can be used (e.g., only in-state public institutions, any in-state institution, or any federally qualified institution, regardless of its location).

How credits will be applied to out-of-state schools.