COLLEGE SAVINGS 101
Compare savings options
Summarizes and compares the features of 529 plans, 529 ABLE plans, ESAs, UTMAs, IRAs, and education savings bonds.
| YEAR 2018 RULES | Roth IRA |
|---|---|
| Federal Income Tax | Non-deductible contributions; withdrawn earnings excluded from income after age 59 1/2 – and five years; 10% penalty on early withdrawals waived if used for qualified higher education expenses | Federal Gift Tax Treatment | No gift involved | Federal Estate Tax Treatment | Value included in the owner's gross estate | Maximum Investment | $5,500($6,500 for taxpayers age 50 and over) | Qualified Expenses | Same as 529 plan | Able to Change Beneficiary | Not applicable | Time/Age Restrictions | Withdraw earnings tax-free only after five years and age 59 1/2 | Income Restrictions | Must have taxable compensation; contribution limit phases out for incomes between $189,000 and $199,000 (joint filers) or $120,000 and $135,000 (single) | Federal Financial Aid | Not counted as asset; withdrawals of principal and interest counted as financial aid income | Investments | Broad range of securities and certain other investments | Use for Nonqualifying Expenses | Taxable portion of withdrawal prior to age 59 1/2 also subject to 10% early withdrawal penalty |
Financial Professionals
Pro Dashboard
Top 529 College Savings Plans
One-year rankings are based on a plan's average investment returns over the last 12 months.
| State | Plan Name | |
|---|---|---|
| 1 | West Virginia | SMART529 WV Direct College Savings Plan |
| 2 | Kansas | Learning Quest 529 Education Savings Program (Direct-sold) |
| 3 | Utah | my529 |
Three-year rankings are based on a plan's average annual investment returns over the last three years.
| State | Plan Name | |
|---|---|---|
| 1 | West Virginia | SMART529 WV Direct College Savings Plan |
| 2 | Alaska | T. Rowe Price College Savings Plan |
| 2 | Alaska | University of Alaska College Savings Plan |
Five-year rankings are based on a plan's average annual investment returns over the last five years
| State | Plan Name | |
|---|---|---|
| 1 | Ohio | Ohio's 529 Plan, CollegeAdvantage |
| 2 | New York | New York's 529 College Savings Program -- Direct Plan |
| 3 | California | ScholarShare 529 |
10-year rankings are based on a plan's average annual investment returns over the last ten years.
| State | Plan Name | |
|---|---|---|
| 1 | New York | New York's 529 College Savings Program -- Direct Plan |
| 2 | South Carolina | Future Scholar 529 College Savings Plan (Direct-sold) |
| 4 | Alaska | T. Rowe Price College Savings Plan |
