Tax advantaged (AGI lowering) college savings??

[fuzzy math]

Hi

Looking to possibly stash some cash for my 2016 return into college savings.
I am in Oregon. Oregon's 529 is deductible off my state income tax but not federal.
Are there any other options that come off federal returns? Any other plans that offer better options than a 529?
I read up on a Coverdell ESA. Is there a benefit to it over a 529?

[COEE]

I read up on a Coverdell ESA. Is there a benefit to it over a 529?

ESA's are treated much like a Roth IRA at the federal level - taxwise anyway - in that they are not deductible, but you pull the money out tax-free when it's time.  The main advantage of the ESA is that you have many more options when you invest.  Usually you can invest in whatever funds/stocks/ETFs are available by your ESA provider.  Contributions are limited to $2k per beneficiary per year until you hit income limits based on your MAGI.

When I started contributions - I started with a ESA because I preferred the flexibility in investment options (low cost index funds).  If you're looking for a write-off, your state 529 is probably the first place to start - but will only help you on your state taxes.

https://www.irs.gov/publications/p970/ch07.html#en_US_2015_publink1000178417

[stepitup]

I used a Traditional IRA for the purpose of saving on taxes. I was able to deduct it when my bracket was higher and then use the money when in school and was in a much lower bracket. I avoided the distribution penalty because education is on of the exceptions.

I'm not saying this is a good option for everyone. Honestly, probably not for most people. But worked for me and something for you to consider for yourself.