December 2003 |
This slide presentation highlights some numerical analysis that compares saving with a 529 plan, Coverdell, UGMA, and taxable mutual funds, in light of the 2003 tax law changes. The analysis shows that the 2003 tax law changes have made UGMAs and taxable mutual funds more attractive than before. However, in most cases considered in this analysis, 529 plans and Coverdells are still better suited for saving for college because of the tax-free treatment on earnings. The 529 plans become even more appealing when contributions are deductible from state income taxes.
This presentation is based on an article published on MorningstarAdvisor.com which is available for your review.