NYCMetro Profile page / 529 Plan Comparison

529 Plan Comparison
	529 Plans	UGMA/UTMA	Education IRA
Maximum Contribution Per Account	Varies by state - generally ranges from $100,000 - $240,000	Unlimited, subject to Annual maximum Contribution (see below)	$500 per year, contributions must stop when the child turns 18
Limitations on Income	None	None	AGI limits apply
Age Limitations	Varies by plan	None	No contributions after age 18, all distributions must be made by age 30
Annual Maximum Contribution Per Account	$50,000 per beneficiary in the first year of a five-year period to avoid federal gift tax consequences ($100,000 per married couple).	$10,000 per beneficiary to avoid federal gift tax consequences	$500
Account Earnings	Tax-free if used for qualified expenses	Taxable. Under age 14 taxed at parents rate	Tax-free if used for qualified expenses
Qualified Use of Proceeds	Any accredited post-secondary program in the U.S and some overseas	Limited to expenses for child only - can not be used for parent's expenses	Any accredited post-secondary program in the U.S. and some overseas
Investment Options	CDs, money market instruments, mutual funds and other investments	Variety of securities	Variety of securities
Funds Removed from Donor's Estate	Yes	Generally no if the donor dies while acting as custodian	Yes
Donor May Change Beneficiary at any Time	Yes	No	Yes
Control of Withdrawals	Account owner only	Transfers to child when child reaches maturity	May be transferred to child when child reaches age of maturity
Penalties for Non-Qualified Withdrawals	10% penalty withheld on earnings only	No	10% penalty on earnings only
Taxation of Qualified Withdrawals	Tax-free	Sale of account assets may trigger capital gains or other taxes to custodian or child	Tax-free
Attribution of Assets for Financial Aid Purposes	Account owner (This is a benefit when applying for financial aid)	Student	Student
Fees to Set-Up and Maintain	Varies	Varies	Varies

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