A Coverdell Savings Account is restricted to families under certain income and age limits while a 529 Savings Plan is more available.
In short, a Coverdell savings account is only available to families under certain income and age limits for beneficiaries applying, and a 529 savings plan is more flexible in general but offers more limited options for investments.
Some parents also choose custodial accounts, taxable investment accounts, retirement accounts, savings bonds, and even regular savings accounts to save for college costs. Some college savings options can impact financial aid eligibility, but a financial advisor can help you determine the approach that’s best for you.
Contact Consolidated Wealth Management to set up a complimentary consultation to discuss these accounts.