529 Savings Plans

529 Prepaid Tuition Plans

Coverdell Education Savings Accounts

Custodial Accounts

UTGA/UTMA

Taxable

Investment Account

Investment Options

Vary by plan, but usually include age-based and static mutual funds options.

Rate of return tied to increases in tuition rates at in-state colleges.

Stock, Bonds, Mutual Funds

Stock, Bonds, Mutual Funds

Stock, Bonds, Mutual Funds

Ownership

Owner

Owner

Guardian

Custodian until the minor turns the age of majority

Owner

Flexibility

College Expenses

College tuition and fees

Educational expenses at any academic level

For the benefit of child

Unlimited

Contribution Limit

Vary by State

Vary by State

$2,000 per year, per beneficiary

$13,000 annually or $26,000 per couple

None

Income (AGI) Limits

None

None

Joint Filers $190,000 to $220,000

None

None

Taxation of Earnings / Distributions

Earnings are tax deferred, if used for qualified expenses distributions are tax free

Earnings are tax deferred, if used for qualified expenses distributions are tax free

Earnings grow tax-deferred and if used for qualified expenses, distributions are tax free

Earnings are taxed at the child