529 Plan and College Savings

Comparison of Different Types of Educational Savings Accounts:

You can read about comparisons of Education Savings Accounts (ESAs) in our 529 Plan Frequently Asked Questions.

	529 Plans	Educational IRA	Savings Accounts *
Tax-free earnings	Yes	Yes	No
Age restriction	None	Stop contributing by age 18 Use up funds by age 30	None
Qualified expenses	College	Any	na
Transfer	Within 529	Can transfer to 529 no penalty	na
Account fee	Usually about $30 annually	Same as 529 plans	na
Portfolio	Diversified	Self Directed	Self Directed
Mutual fund fees within 529 portfolios	About 0.5%	Depends on MF	Depends on MF
Potential upside	High	Moderate	Low
Potential downside	Moderate	Moderate	Low
Diversification	Yes	If account balance high enough	If account balance high enough

* Savings accounts at banks, credit unions, or other financial institutions.

Related posts

• Compare 529 Plans