Synthesis: Special Types of Accounts

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

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