Good page for high level 529 pros and cons. http://www.petersons.com/college-search/529-plan-pros-cons.aspx The limited investment choices is the part that will push me towards a normal investment account (in my name). Sure the 529 has tax advantages, but we're talking capital gains tax (15% on earnings) not income tax. I'm pretty certain, with wide open investment choices my earnings will be more than 15% higher than the limited choices in a 529. ex. If the 529 returned 9%, I would just have to earn 10.35% (9 * 1.15=10.35) in a standard investment account to offset the tax advantage of the 529. If I do nothing more than pick mutual funds rated 4 or 5 star by Morningstar, it's easy to find funds that have returned over 20% for the last 3 years. If Obama blows up the capital gains tax that could change. YMMV.