TENNESSEE

Type: Savings

Phone: 888-486-BEST

State tax deduction for residents: No deduction

Open to nonresidents: Yes

Refund provisions: Penalty of 10% of earnings

Minimum/maximum contributions: $25 ($15 through payroll deduction) / $235,000

Tennessee's plan offers a conservative age-based portfolio that's 35% in bonds for 2- and 3-year-olds, and 65% in bonds for a 10-year-old. This portfolio seriously lagged its peers in the past year. Plus there's a 100% stock portfolio that's had below-average returns. Fees and investment expenses are higher than with other TIAA-CREF plans, at about 0.95% of assets.

Tennessee BEST Prepaid Tuition Plan

Type: Prepaid (tuition units)

Phone: 888-486-BEST

State tax deduction for residents: No deduction

Open to nonresidents: No

Refund provisions: No refund until the beneficiary is age 18, then penalty of 10% of earnings, less a $25 fee.

Minimum/maximum contributions: $43.60 / $235,000

With tuition inflation averaging 7% in the plan's first three years, participants have done reasonably well in Tennessee's prepaid plan. But the state does not provide a guarantee, and you cannot touch your contributions until the beneficiary is college age.