Education Savings Vehicles

Free CFP Exam lesson in General Principles of Financial Planning. 17 min read, ~2,500 words.

529 plans dominate: no income limits, tax-free qualified withdrawals, superfunding up to $95,000/$190,000, and a 5.64% FAFSA assessment. Coverdell ESAs cap at $2,000/year per beneficiary and phase out at $110,000 single / $220,000 joint MAGI. UTMA/UGMA carry the worst FAFSA treatment at 20%, trigger kiddie tax above $2,700, and give...