Comparing college 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||UGMA/UTMA Custodial Accounts||Coverdell Education Savings Account||Series EE and I Savings Bonds|
|Tax-free withdrawals for qualified education expenses||Footnote1|
|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 control Footnote2|
|Tax-free accelerated gifting|
|Minimal impact on financial aid eligibility when parent owned|
|No income limits restricting eligibility|
Begin footnote 1 content.Return to footnote reference 1 Covers tuition and fees only. Costs of room & board and books are not eligible expenses. Additional restrictions apply.Return to footnote reference 1End footnote 1 content.
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