dmward54
You have to evaluate the value of the tax deduction vs. the additional fees vs. any expected difference in performance.
I don't know what your marginal OR state tax rate is, but with a maximum household deduction of $2000 the annual value of the deduction probably is not significant. Plus, keep in mind that you reduce the value of the deduction by your federal marginal tax rate, presuming that you itemize your federal deductions. So if the OR tax rate is 6%, and your federal tax rate is 27%, the value of the deduction (1-.73) x (.06 x 2000), or about $87 per year. If the fee difference is .6% annually, then the fee difference on the invested $2000 is $12. The fee difference will, of course, change annually as the invested amount increases/decreases in value.
In many cases, the state tax deduction is not necessarily a significant driver in making the decision.
BTW, if you are attracted to TIAA-CREF plans because of the low fees, consider the NY plan. It recently changed to a Russell 3000 index fund as its core equity fund which is probably an upgrade, given the reported mediocre performance of the dual-management, LC growth oriented fund used in MN and most other T-C states.
Hope this helps.
TJ