$1,000 BUYS: MONEY

College Made Easy

Start saving early with a 529. Your $1000 will grow tax-deferred, and distributions will be tax-free, if you use the money for college expenses.

Start by looking at your home state's plan. If it offers a tax deduction for contributions,that break trumps lower fees in an out-of-state plan. The playing field is leveled if your state doesn't offer a tax break, or if you live in Arizona, Kansas, Maine, Missouri or Pennsylvania, which give a tax break no matter where you invest.

For low overall costs, we like the Illinois Bright Start College Savings Program. For top portfolios, we like the Alaska's T. Rowe Price College Savings Plan. Among adviser-sold plans, Virginia College America is the standout. but direct-purchase plans
are generally better than adviser-sold plans, which carry sales
charges. Our 529 Tool can help you find the right plan. -- Thomas M. Anderson