College Savings Account What Is The Difference Between A Coverdell College Savings Acct. And A 529 College Savings Account?

What is the difference between a Coverdell college savings acct. and a 529 college savings account? - college savings account

The previous poster is correct. ESA and 529 are not the same. I have attached a comparison table for you.

Coverdell ESA
From $ 2,000 per year you can invest your time earning less than $ 110K per year (individual) or $ 220K per year (joint)

You can use them for the primary and secondary schools.

Can be transferred to 529, but may be compelled to condemn fines and costs.

He is a student, the student in the calculation of the grant may be applied. In addition, children money when they are 18 so if you do not feel like going to school, would be his choice. You can withdraw the money and travel to Europe if they so wish.

529 (Prepaid and Savings Plan)
I do not recommend the early repayment, as it would be difficult to want to carrier in which your child to guess go in the afternoon.

A big advantage is not the 529 active the child is not applicable in the calculation of financial support (and some might, but not as Coverdell)

You can usefor college and not on the primary and secondary schools.

You can deposit up to $ 11k per year, or front-loading of $ 55K (that is, you can not run anything for 5 years). Most plans have limits of $ 100K $ 300K contribution max life.

In some states there is an advantage. See previous vendor site (www.savingforcollege.com) for details.

You are not firmly connected with their condition. So, if your condition does not propose a tax benefit, you have to look around. I left the States with funds from Vanguard or DFA (Dimensional Fund Advisors) and the lowest cost.

States try to Nebraska, Utah, West Virginia. The best and lowest prices, with many options. Every state has specific plans, so I went to see some of you.

HTH