As a grandparent, I can do a gift (tax free) 17,000 a year to a 529 plan. I'm thinking Schwab, but ........, Yes there is a college one for Alabama that does offer to deduct the state tax free up to a limit (of course), 5K is all. Now, with a 529, you can also do a catch-up of $80K (something like that), ours is young, so we have time. Now, I can also make straight payments to the school as well, so no gift tax on that!!!!!! I'll be over 72, so won't be penalized for pulling from some of my investment accounts that I'm giving to now, or some of the rental income we have. The backdoor, SEP and Roth's will come in handy -- before I'm flamed, the SEP and Roth can not be done at the same time.

Also, I'm with BigED, we have rental properties, so she can definitely earn money too. There is plenty to do with those that can be done via computers --- another source for high school and college.

If you're the parent, look at a 529 for Schwab, T Rowe, or Fidelity --- even a new one Kinecta.

Just a tip --- 529 can be used for under college expenses too --- did you know a 529 can also be used for internet, software or even a computer? Yep, all that is needed for high school and college.

There are some pluses and minuses to a 529 for sure -- what if they don't go to college - ok, rollover 35K to a roth for them, no tax no gift tax, this is from your original contributions ---- what about the rest of the money -- weird, I can withdraw "my contributions," but anything it made, I have to pay taxes on it and a 10% penalty. Yeah, you can change it to another grandkid, but ...... right now I have one.

That last part is why we are still in limbo about that 529, I do like the fact I can make a direct payment to the college/high school/private school and not incurr a gift tax penalty.

“If you do not conquer self, you will be conquered by self.” Napoleon Hill
The most difficult thing to understand during conversation is silence. Thoreau