Private College 529 vs. Other Education Savings Options

Private College 529
Yes
None. Prepaid tuition guaranteed by participating schools
Undergraduate tuition at participating schools. Any qualified expense at non-participating schools
None
Account owner assets
Qualified withdrawals
Varies by state
Varies by state
None
5x tuition for 5 years at most expensive participating school (now $276,050)
Account owner
None
Account owner controls
Up to $14,000 ($28,000 for joint filers) per child, or combined five-year gift up to $70,000 ($140,000)
Excluded from donor estate (proportional inclusion if donor dies during the five-year election period)
529 College Savings Program
No
Varies
Range of higher education expenses, i.e. tuition, fees, books, computers, room and board
Varies by state and investment choices. May incur sales charges if bought through broker/advisor
Account owner assets
Qualified withdrawals
Varies by state
Varies by state
None
Varies by state
Account owner
None
Account owner controls
Up to $14,000 ($28,000 for joint filers) per child, or combined five-year gift up to $70,000 ($140,000)
Excluded from donor estate (proportional inclusion if donor dies during the five-year election period)
Coverdell Education Savings Account
No
Varies
Range of education expenses, i.e. tuition, fees, books, supplies, room and board, including K-12
Varies. May incur sales charges if bought through broker/advisor
Account owner assets
Qualified withdrawals
None
None
Phases out for incomes between $95,000 - $110,000 (single), $190,000 - $220,000 ( joint)
$2,000 per year
Account owner
Can contribute until child reaches 18. Must spend assets by child's 30th birthday
Account owner controls
Up to $2,000 per year per child without gift tax
Excluded from donor estate
Ugma/Utma Account
No
Varies
Not restricted to education expenses
Varies. May incur sales charges if bought through broker/advisor
Student Assets
None
None
None
None
None
Assets irrevocable
18 or 21, depending on state law
May not be changed or transferred
Up to $14,000 per year per child without gift tax
Excluded from donor estate
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