What differentiates the Coverdell Section 530 and the Section 529?
Author: Mock Webware |
The Section 529 allows for much larger yearly investments, whereas the Section 530 currently only allows for $2000 annually.
The choice of investments in the Section 529 is extremely conservative and limited while the Section 530 allows for many different options.
The Section 530 is a nationwide program while the 529 varies from state to state.
The Section 530 will let you use its funds for primary and secondary education, while the Section 529 can only be used to pay up to a total of $10,000 of tuition per beneficiary (regardless of the number of contributing plans) each year at an elementary or secondary (k-12) public, private or religious school of the beneficiaries choosing.