<prompt> Human: My wife is due in April, and I would like to start investing for my future daughters education.So far, I know that I cannot start a 529 account until my daughter is born. I also know that it varies by state. I live in Illinois, so I have two options: Prepaid tuition and an investment optionI have a few questions about these plans How does tax deduction for these plans work? If I move from the state, will I need to switch plans to my new state of residence? If I invest in a different states plan, do I lose my tax deduction? Would it make sense to buy pre-paid tuition vs. the investment option?Any other suggestions or information would be helpful as well. Thanks!Edit: Formatting  <response>: How does tax deduction for these plans work?When filling out your state income taxes not federal each year, you will be able to deduct up to 20,000 per year, depending on how much you contributed. This will reduce your taxable income for state income taxes only.If I move from the state, will I need to switch plans to my new state of residence?No, you can open a 529 in any state, at any time, and can continue to contribute to an Illinois 529 if you move elsewhere. With that said, if you move, you will no longer be eligible for the state income tax deduction, as you no longer pay state income tax. Depending on where you move, it may behoove you to open a new 529 if your new state has a tax deduction available.If I invest in a different states plan, do I lose my tax deduction?Yes. Some states allow for contributions to other state 529s to qualify for a tax deduction, but it does not appear that Illinois is one of those states.Because Illinois offers a tax deduction, you should likely use the in-state plan, as any cost savings you reap by using a lower cost plan like NYs 529 will be lost due to the lack of a tax deduction.Would it make sense to buy pre-paid tuition vs. the investment option?Either choice is a gamble. Based on the way that college costs are going the pre-paid plan may make more sense if you think costs will continue to accelerate as they have been. In my opinion, the rise in college costs is unsustainable, but that is just my opinion. It looks like Illinois pre-paid plan costs between 54,000 and 66,000 depending if you opt for a lump sum or payment plan for a 4 year university education tuition only. Assuming you invested 60,000 and received a 6 annual return over 18 years, you would end up with 175,000. If you think college tuition will cost more than 175,000, then the pre-paid plan is for you. If you think it will cost less, then the investment option is better Please note that these are ballpark numbers, I would suggest you perform a similar analysis yourself with the specific pre-paid plan you are considering.I cannot start a 529 account until my daughter is born.You can open a 529 now with yourself as the beneficiary. Once your child is born and has a SSN, you can make them the beneficiary by transferring the account. 