 |
|
|
|
|
| |
529 Savings Plan |
Coverdale
Education
Savings Account |
UGMA/UTMA |
529
Prepaid Plan |
| Income
limitations |
None |
AGI limits
apply |
None |
None |
Maximum
yearly
contribution beneficiary
(individual contributor) |
$60,000 in
the first
year of a five-year
period
without exceeding
the annual federal gift
tax exclusion
|
$2000 |
$12,000
without
exceeding the
annual federal
gift tax exclusion |
$60,000 in
the first
year of a five-year
period without exceeding
the annual federal gift
tax exclusion |
Ability to
change
beneficiaries |
Yes |
Yes |
No |
Yes |
| Control of
withdrawals |
Owner
of account |
Transfers
to child
at designated age‡ |
Transfers
to
child when child
reaches legal age
of securities |
Owner of
account |
| Investment
options |
Ready-made
portfolios
of mutual funds |
Wide range
of securities |
Wide range of
securities |
Tuition units
guaranteed
to match tuition inflation |
State tax
deductible
contributions |
Varies
by state |
No |
No |
Varies by
state |
| Qualified
use of proceeds |
Any
accredited
post-secondary
school in the U.S. |
Any
accredited
primary, secondary,**
or post-secondary
school in the US |
Unlimited |
Varies by
state |
Penalties
for nonqualified
withdrawals |
10%
penalty withheld
on earnings† |
10% penalty
withheld
on earnings |
No |
10% penalty
withheld
on earnings† |
Taxation
of qualified
withdrawals |
Federal
income tax
free |
Tax-free |
A portion may
be
Federal tax exempt;
some/all income may
be taxed at child's rate |
Federal
income tax
free |
Ownership
of assets
for financial aid
purposes (may vary
with private institutions) |
Account
owner |
Student |
Student |
Student |
|
|
| Source:
Putnam Investments |
