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Many pre-paid tuition plans are sponsored by state governments and have residency requirements. State  

Like the UGMA accounts, Coverdell ESA’s are self directed, giving you more investment opportunities. Like 529 plans, Coverdell ESA’s are tax free up to the year 2010 when used for college. Once concern, as with Educational IRA, is that there is a contribution limit of $2,000 which is combined with grandaparents and phase outs from parental income of $95,000 as a single filer and $190,000-$220,000 for joint filers. If it is over funded you will face penalties.

The benefits of using a 529 college savings plans are so compelling that many parents have closed out their custodial accounts, paid the respected tax, and reinvested it into the 529 plan.

These accounts are self-directed so you can open a brokerage account, buy stocks and bonds or mutual funds. A UGMA is a custodial account setup in your child’s name. Any money you contribute to an UGMA is , by law, an irrevocable gift to your children. While UGMA accounts are not specifically designed to provide financing for college. Many investors however, use them for this purpose because the assets become available to the minor when he or she reaches the age of maturity, which in most statesis at the age  

Are you familiar with the 529 plans? They have become quite popular because of the benefits they offer college bound students but what do you need to know. Find the 4 reasons below:

Control- Unlike UGMA’s (Uniformed Gift to Minors Account) you never lose control of the assets as the