Compare Savings Options - NY529 Advisor Site
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Compare Savings Options

Saving for college is challenging enough. With so many options, finding the right savings strategy is crucial. In addition to 529 plans, college savings alternatives include UGMA/UTMA accounts, Coverdell Education Savings Accounts, and Series EE and Series I savings bonds. As you can see from the comparison chart below, a 529 plan offers benefits not typically found in other types of education accounts.

 

  New York's 529 Advisor-Guided College Savings Program Plan UGMA/UTMA Custodial Accounts Coverdell Education Savings Account Series EE and I Savings Bonds
Tax-free withdrawals for qualified education expenses   1
New York State income tax deductions on contributions      
No age limits on beneficiaries or contributors      
Flexibility to change beneficiaries  
Account owner control no matter what the beneficiary's age    
Assets intended specifically for education    
Assets removed from estate without losing control2      
Tax-free accelerated gifting      
Minimal impact on financial aid eligibility when parent owned  
No income limits restricting eligibility    

 

1 Covers tuition and fees only. Costs of room & board and books are not eligible expenses. Additional restrictions apply.
2 Assuming account owner and contributor is the same person.