Ready to select an account to save for education? Compare them below, or call one of our experienced investment professionals at 1-866-243-0931 for more assistance.
Coverdell Education Savings Account (ESA) |
529 Plan from Wells Fargo Advisors |
Custodial Account from Wells Fargo Advisors |
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Account Description
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Tax-deferred account with earnings and withdrawals free from federal income tax if used for qualified education expenses prior to age 30; contribution limits apply
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A flexible tax-advantaged way to invest for education. 529 plans allow you to:
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A simple way to transfer property to a minor; called a Uniform Transfer to Minors (UTMA) or Uniform Gift to Minors (UGMA) depending in which state the minor resides
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Income Eligibility Restrictions
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None
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None
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Beneficiary age limits
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Age 18, must be used by beneficiary by age 30
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No age limit
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Generally up to age of majority (18 - 21) for your state
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Maximum yearly contribution per student
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To avoid exceeding annual federal gift tax exclusion:
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No limit, up to $15,000 can be treated as a gift for gift-tax purposes
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Qualified withdrawals
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Qualified education expenses including tuition, room and board, fees, books, equipment, and supplies at an eligible elementary, high school, and post-secondary school, as well as computer equipment for elementary and high school (restrictions apply)
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Must be used for benefit of the minor. Subject to state law.
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Penalties for non-qualified withdrawals
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N/A |
Taxation of earnings and withdrawals |
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Earnings are taxable, typically at the minor’s tax rate. ”Kiddie tax” rules apply. |
Call one of our experienced investment professionals at 1-866-243-0931 to open an account.
Please consider the investment objectives, risks, charges and expenses carefully before investing in a 529 savings plan. The official statement, which contains this and other information, can be obtained by calling your Financial Advisor. Read it carefully before you invest.