| Plan Type |
Contributions |
Ownership |
Taxes |
Utilization |
529 Plans
Saving & prepaid plans |
Contributions are excepted until account reaches $257,460 |
Account owner has full & complete control over the account |
Account grows tax free. Withdrawals for education remain federal tax free. |
Contributions are removed from a taxable estate |
Coverdell
Education Savings Accounts (ESA'S) |
Annual Contribution is limited to
$2000 |
Account owner maintains control until beneficiary reaches age 30 |
Earning grow tax free. Withdrawals for qualified elementary, secondary or higher education remain federal tax free |
Contributions are removed from taxable
estate |
UGMA
Uniform gift to minors act |
Unlimited |
Custodian has limited control. |
Before child reaches age 14, first %750 of income over child's standard deduction is taxed |
Account value is included in the account's taxable estate |
UTMA
Uniform transfer to minors act |
Gifts of more than $11,000 per yr will be subject to gift tax reporting |
Assets can only be spent for benefit of child. Cannot revoke gift |
| Brokerage |
UNLIMITED |
Account owner has control |
Taxable |
Varies |
