College Savings Plan vs. Custodial Accounts
Updated: January 7, 2009
529 college savings plans have become very popular. Many parents with custodial accounts consider transferring these accounts into the 529 plans. So is one better than the other?
As shared by Donna Greene of First Busey Securities (Member NASD/SIPC) on "The Morning Show."
COLLEGE SAVINGS PLANS VERSUS CUSTODIAL ACCOUNTS
College Savings Plans
-Allow funders to retain control of assets
-Can change beneficiaries
-Less impact on student aid
-Tax free if used for qualified education expenses
Custodial Accounts
-Custodian retains control over investments
-Funds can be used for expenses other than college
-Some tax benefits
6 NOVEMBER 2003
