|
|
529 Savings Plan |
Coverdell |
UGMA/UTMA |
Taxable Account |
|
Income restriction? |
No |
Available to individual with income under $110,000 or joint filers with income of less than $220,000 |
No |
No |
|
Contribution limit |
Depends on plan, though limits are generally high |
$2,000 per year limit per beneficiary |
$12,000 per year limit per beneficiary not subject to gift tax (higher if joint contribution by spouses) |
No |
|
Annual contribution required? |
No |
No |
No |
No |
|
Contributions to other plans permitted? |
Yes |
Yes |
Yes |
Yes |
|
Contributions tax-deferred/tax-free? |
No |
No |
No |
No |
|
Growth tax-deferred/ tax-free? |
Yes |
Yes |
No. Beneficiary pays income taxes annually. |
No |
|
Withdrawals tax-free? |
Yes, free of federal tax and possibly of state tax, if used for qualified expenses. |
Yes, if used for education. |
No |
No |
|
Beneficiary change permitted? |
Yes, to another member of beneficiary's family. |
Assets transferable to Coverdell of member of beneficiary's family. |
No |
Yes |
|
Contributor controls account and asset use? |
Yes |
Yes |
Yes as to account. No as to use. |
Yes |
|
Covered expenses |
Higher education: tuition, fees, room, board at qualified institutions. |
Private school K-12: tuition, books, room, board through 2010; Higher education. |
Account proceeds may be used for any expense, education-related or not. |
n/a |
|
Estate Planning Benefit |
Yes, $60,000/individual and $120,000/couple per beneficiary (tax benefits applied pro rate across 5 years if maximum amount contributed as lump sum). |
No |
No |
No |
