|Features||LoneStar 529 College Savings Plan||Coverdell Education Savings Account||UGMA/UTMA Account|
|Beneficiary Age Limit||None||Can contribute until child reaches 18. Must spend assets by child’s 30th birthday||18 or 21, depending on state law|
|Account Owner Income Limit||None||Phases out for incomes between $95,000 and $110,000 if single, $190,000 and $220,000 if married||None|
|Federal Tax Exemption||For qualified withdrawals||For qualified withdrawals||None|
|Contribution Limit||$370,000 per child1||$2,000 per year||None|
|Account Control||Parent/account owner||Parent/account owner||Child assumes control at legal age of majority|
|Beneficiary Flexibility||Flexible beneficiary designation2||Flexible beneficiary designation2||May not be transferred|
|Financial Aid Impact||Considered account owner’s assets||Considered account owner’s assets||Considered student’s assets|
|Asset Use||Can be used for a broad range of higher education expenses||Can be applied to elementary, secondary and higher education expenses||Unrestricted, provided it is for the benefit of the minor|
|Gift Tax Treatment||Qualifies for up to $14,000 ($28,000 for married couples) per child, or a combined five-year gift of up to $70,000 ($140,000 for married couples)2||Amount contributed qualifies for exclusion from gift tax||Qualifies for up to $14,000 ($28,000 for married couples) per child, or a combined five-year gift of up to $70,000 ($140,000 for married couples)2|
|Estate Tax Treatment||Considered removed from donor’s estate (partial inclusion if donor dies during the five-year election period)||Considered removed from donor’s estate||Considered removed from donor’s estate|
1. All assets, including earnings, under all 529 accounts within all plans maintained by the state of Texas, including the Texas Guaranteed Tuition Plan, established for the benefit of a particular beneficiary must be aggregated when applying this limit. New contributions will not be allowed once this limit is reached. Earnings, however, will continue to accrue.
2. Under federal law, changes are limited to qualified family members of the current beneficiary.
3. You may reallocate existing assets twice a calendar year or when changing a beneficiary. Changing the allocation of future contributions may be done at any time.