Traditional IRA

• Can change investments any time
• Can choose your own investments
• Contribution tax deferred

• Contribution up to $3,000 year 
• Withdrawals taxed
• Withdrawals not penalized if used for Higher education
• Cannot get diversified portfolio if small account

Roth IRA

• Can change investments any time
• Can choose your own investments
• Withdrawals after establishing account for 5 years for higher education are not taxed

• Contribution up to $3,000 year
• Contributions are taxed
• Cannot get diversified portfolio if small account
• Income restriction

529 Plans

• No income restriction
• High maximum contribution and no contribution per year restriction
• Withdrawals for higher education are not taxed
• Can have a diversified portfolio even if the account is small

• Limited pre-set portfolio
• Can only change option once a year
• Cannot be used for other reasons but education