States Take Lead in Offering College Savings Plans

The Education IRA, created by Congress, allows you to put away up to $500 a year in a tax-deferred account.

Big deal.

Massachusetts' new U-Fund program allows you to invest up to $150,000 per account in a savings program run by Fidelity Investments. And there are no income limits on participation, like there are with the Education IRA. Your money grows tax-deferred -- that is, you pay no state or federal taxes on the earnings until you're ready to withdraw them. And your child doesn't have to go to a Massachusetts college to use it. ...