A 529 is a state-sponsored, tax-deferred college investment account. There are two types of 529 plans: prepaid tuition plans and education savings plans. The prepaid tuition plan covers only tuition and required fees. The savings plans can be used to pay qualified educational costs not covered by the prepaid plan such as books, lab fees, and room and board.
Uniform Transfers to Minors Act (UTMA) Account
Utilizing an UTMA account makes it easier to make gifts to minors. While UTMA accounts are not specifically designed to provide financing for college, many parents and guardians use them for this purpose because the assets become available to the minor when he or she reaches the age of 18.
Coverdell Education Savings Account
A Coverdell education savings account, sometimes known as a Coverdell ESA, is a trust or custodial account set up in the United States solely for paying qualified education expenses for the designated beneficiary of the account.