Educational Funding Options Comparison Chart for 2009
by | Jun 8, 2009 | Resources |
|
|
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
|
