<prompt> Human: I have 2 kids - one will be a junior in college next year and the other is starting college. One goes to college in Ohio and the other will be in Wisconsin - we live in Illinois. I do not have a 529 plan for them, but I do have other savings that I will use, so they will not have to go into debt for their education. My question is, can I save taxes by opening a 529 for each of them now, putting the max in, and using that money this Fall when college starts? Within the 529 Id use a money market account so I dont take short-term market risk. Is this a smart strategy? Are their any gotchas I should know about?  <response>: Its worth mentioning, since others here havent, that some states offer additional grants through their sponsored 529 plan. For instance, the state of Maine offers 200 dollars for residents who open a 529 account, and matching grants worth up to 300 per year. Its not huge, but its textbooks for a semester. You should look at whether your state offers any incentives. 