The 4-1-1 on 529 college plans.

Many middle- and upper-income families can benefit greatly from a 529 college savings plan. Named for a section of the tax code, 529 plans allow savings to accumulate tax-free and be withdrawn free from federal taxes when used for qualified college costs. The plans also encompass states' prepaid tuition programs.

Now that every state and the District of Columbia either sponsors a plan or is developing one, it's hard to choose the right plan, especially since you can set up a 529 account in any state.

The various plans represent an increasingly complex range of stock and bond portfolios, fees, expenses, and restrictions. Altogether, 529 plans account for $19 billion in assets, a figure that is expected to grow to at least $65 billion in five years. Financial-services companies are jostling for a piece of that action, bringing commissions and extra expenses with them. Each state's plan is usually managed by just one company, so to take advantage of the full range of investment choices, you have to compare different states' plans.

A few plans offer only one or two investment options. Others offer a number of funds, with portfolios that range from conservative to highly aggressive. Your bank or broker may sell you an out-of-state plan not because it is the one that's best for you, but because it's the one the firm manages or the one that earns a commission. Here's how to cut through the confusion:

* Compare your state's 529 plan with others at www.collegesavings.org, a web site operated by a consortium of state-sponsored plans, or at www.savingforcollege.com, a ...