Compare College Savings Options

There are currently three main options for tax-deferred college savings. Use this table to see how the iShares 529 Plan compares to other savings options, feature by feature.

FEATUREISHARES 529 PLANCOVERDELL EDUCATION
SAVINGS ACCOUNT
UGMA/UTMA
There are no income limitations for the account owner Yes/Selected Income limitations apply1 Yes/Selected
Federal tax-free growth Yes/Selected Yes/Selected Income and capital gains taxed to minor2
Ability to change beneficiaries Yes/Selected Yes/Selected No
Account owner control withdrawals Yes/Selected Yes/Selected Transfers to child when child reaches age of maturity
State tax deductible contributions Yes/Selected No No
Tax-free qualified withdrawals Yes/Selected Yes/Selected Income and capital gains taxed to minor2
Federal financial aid impact Counted as asset of parent if parent is account owner; not reported if dependent student is account owner Counted as asset of parent if parent is account holder; minimal impact if dependent student is account owner Counted as student's asset
Investment options Ready-made portfolios of securities Wide range of securities Wide range of securities
Federal gift-tax treatment Can elect to apply up to five years of annual gift tax exclusion allowances in a single lump sum contribution (up to $70,000 individually or $140,000 if married, filing jointly) in a single year per beneficiary3 Contributions may be treated as completed gifts up to a maximum of $2,000 Can contribute $14,000 each year ($28,000 married filing jointly) without gift tax consequences
Maximum investment per beneficiary Maximum contribution limit of $366,000 $2,000 per beneficiary per year No limit
Information as of 03/17. Subject to Change.

 

iShares 529 Plan tax advantages

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