IRC §529 · §530 · §1(g) cited

Kid Saver: 529 vs Coverdell vs UTMA

Three ways to save for a kid. One is usually best. We do the math so you can stop guessing.

Child's current age

Annual contribution

Expected total college cost (today's dollars)

State of residence

Filing status (for state deduction)

Expected annual growth rate

Projected balance at age 18

529 Plan

tax-free qualified withdrawals

Coverdell ESA

capped at $2K/yr per child

UTMA

taxable, kiddie-tax exposed

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Citations: IRC §529(c)(2) 5-year forward, §530 Coverdell, §1(g) kiddie tax. Verify at irs.gov/pub970

Have us set up the right plan for your kid

Projections assume constant contributions and growth. State deduction examples (FL, no income tax. NY, up to $5K single or $10K MFJ per N.Y. Tax Law §612(c)(32)) are illustrative. We verify your state and run real numbers. Phone 689-331-5723.