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      Type of Account  
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    529 College Savings Account   Coverdell Education Savings Account   UGMA/UTMA Custodial   Parents’ Investment Account  
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<empty> Income limits   None. Anyone can contribute.   Ability to contribute is phased out for married couples with incomes between $190,000 and $220,000 and for individuals with incomes between $95,000 and $110,000.*   None.   None.  
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  Contribution limits   $250,000 per beneficiary.   $2,000 per year per beneficiary.*   None.   None.  
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  Income tax treatment   Earnings can grow tax free, and withdrawals for qualified higher education expenses are free from federal tax.   Earnings can grow free from tax, and withdrawals for qualified elementary, secondary* and higher education expenses are free from federal tax.   For children either (i) under age 19 or (ii) full-time students under age 24 whose earned income does not exceed one-half of their support, the first $900 of earnings is tax free. Earnings between $900 and $1,800 are taxed at the child’s rate; earnings above $1,800 are taxed at the parent’s rate.   Dividends and interest are taxed to owner at applicable rates, and capital gains are taxed at capital gain rates.  
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  Control   Owner maintains control of the assets, decides when withdrawals will be made and can change the beneficiary.   Beneficiary may assume control at age of majority, 18 or 21 in most states.   Beneficiary assumes control at age of majority, 18 or 21 in most states.   Owner maintains control of the assets and decides when withdrawals will be made.  
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  Investment flexibility   You can change your assets among funds once each calendar year or when you change the beneficiary.   You can change your assets as often as you want.   You can move your assets as often as you want, but each transfer usually is a taxable event.   You can move your assets as often as you want, but each transfer usually is a taxable event.  
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  Uses   Higher education expenses, such as tuition, room and board, books and supplies.   Education expenses, including tuition, books and room and board for kindergarten through high school, college and graduate school.   Any use that benefits the child.   Any use.  
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  Ability to change beneficiaries   Yes.   Yes.   No.   Not applicable.  
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  Penalties on nonqualified withdrawals   Ordinary income taxes and a 10% federal tax penalty on earnings.   Ordinary income taxes and a 10% federal tax penalty on earnings.   Not applicable.   Not applicable.  
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  Rollovers   Yes. Allowed once every 12 months or when you change the beneficiary.   Yes. Allowed once every 12 months.   Not applicable.   Not applicable.  
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      empty* This tax benefit is effective through 2010 unless extended by Congress.
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