Education IRA Description State-sponsored plans that offer professional investment management, tax benefits, and can be used at any accredited college and university nationwide. Allows account owner to pay tomorrow's tuition at today's rate.
Account is sponsored and guaranteed by states for limited participating schools, usually in-state.
A brokerage account with a custodial account registration. Allows a participant to invest in stocks, bonds, and mutual funds on behalf of a minor. Qualified distributions are taxed upon withdrawal at student's rate, which is often lower than the account owner's. If organized under Internal Revenue Code Section 529, follows 529 Plan for tax treatment. All or a portion of earnings are tax-free or are taxed at child's rate.