Compare savings options

Summarizes and compares the features of 529 plans, 529 ABLE plans, ESAs, UTMAs, IRAs, and education savings bonds.

Federal Income TaxNon-deductible contributions; withdrawn earnings excluded from income after age 59 1/2 – and five years; 10% penalty on early withdrawals waived if used for qualified higher education expenses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 TreatmentNo gift involved
Federal Estate Tax TreatmentValue included in the owner's gross estate
Maximum Investment$6,000 ($7,000 for taxpayers age 50 and over)
Qualified ExpensesCollege tuition, fees, books, computers and related equipment, supplies, special needs; room and board for minimum half-time students. Up to $10,000 in tuition expenses for K-12 schools. Up to $10,000 in student loan repayment.
Able to Change BeneficiaryNot applicable
Time/Age RestrictionsWithdraw earnings tax-free only after five years and age 59 1/2
Income RestrictionsMust have taxable compensation; contribution limit phases out for incomes between $204,000 and $214,000 (joint filers) or $129,000 and $144,000 (single)
Federal Financial AidNot counted as asset; withdrawals of principal and interest counted as financial aid income
InvestmentsBroad range of securities and certain other investments
Use for Nonqualifying ExpensesTaxable portion of withdrawal prior to age 59 1/2 also subject to 10% early withdrawal penalty

Reset email successfully sent.
Please check your inbox.