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 |
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| New York State income tax deductions on contributions |
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| No age limits on beneficiaries or contributors |
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| Flexibility to change beneficiaries |
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| Account owner control no matter what the beneficiary's age |
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| Assets intended specifically for education |
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| Assets removed from estate without losing control1 |
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| Tax-free accelerated gifting |
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| Minimal impact on financial aid eligibility when parent owned |
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| No income limits restricting eligibility |
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