This section brings together the three account types covered in this unit for quick comparison and exam review.
Account Type Quick Reference
| Feature | 529 Plan | Coverdell Education Savings Account (ESA) | UTMA/UGMA | Health Savings Account (HSA) |
|---|
| Primary purpose | Education savings | Education savings | Any purpose for minor | Medical expenses |
| Tax on contributions | After-tax | After-tax | After-tax (gift) | Pre-tax / deductible |
| Tax on growth | Tax-deferred | Tax-deferred | Taxed (kiddie tax) | Tax-free |
| Tax on qualified withdrawals | Tax-free | Tax-free | N/A | Tax-free |
| Income limits | None | Yes | None | None (but need High-Deductible Health Plan) |
| Contribution limit | State aggregate | $2,000/year | No limit (gift tax applies) | $4,300-$8,550 (2025) |
| Owner retains control | Yes | Yes (custodian) | No (minor owns assets) | Yes (individual) |
| Funds must be used by | No deadline | Age 30 | No restriction | No deadline |
| Non-qualified penalty | 10% on earnings | 10% on earnings | N/A | 20% before age 65 |
Key Numbers Reference (2025)
| Account | Item | Amount |
|---|
| 529 | Annual gift tax exclusion | $19,000 |
| 529 | Superfunding (5-year front-load) | $95,000 |
| 529 | To Roth IRA rollover lifetime cap | $35,000 |
| 529 | K-12 tuition annual limit | $10,000 |
| 529 | Student loan lifetime limit | $10,000 |
| Coverdell | Annual contribution per beneficiary | $2,000 |
| Coverdell | Phase-out, single | $95,000-$110,000 |
| Coverdell | Phase-out, married filing jointly | $190,000-$220,000 |
| Coverdell | Contributions must end | Before age 18 |
| Coverdell | Funds must be used by | Age 30 |
| UTMA/UGMA | Kiddie tax, parents' rate kicks in | Above $2,700 |
| UTMA/UGMA | Free Application for Federal Student Aid (FAFSA) impact rate | 20% |
| HSA | Self-only contribution | $4,300 |
| HSA | Family contribution | $8,550 |
| HSA | Catch-up (age 55+) | +$1,000 |
| HSA | Non-medical penalty (under 65) | 20% + income tax |
| HSA | Non-medical after 65 | Income tax only |