Educational Savings Accounts Compared
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.
| 
