Are 529 College savings plans the best way to save for college education?

Question

I live in NJ and am looking to see what state offers the best plan for my daughter. Also, just because I choose one state's plan does not mean mny daughter must go to that state for school, correct? I would like to know what is the best possible way for me to save for her--she is 12. She has some savings.

Answer 1

I would say that a 529 is the best option for saving for college.  Not only can you put after tax money in, but others can contribute as well, subject to the gift tax limits (eg. around $11k).  

Correct, you can use the money anywhere, it just must be an accredited school.  I believe that you can contribute to any state, it doesn't have to the one in which you live.