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Compare College Savings Options

There are a number of investment accounts you can use to help save for a child's education. Each offers different features and benefits and can be opened by a friend or relative on behalf of a child.1


Call a college savings representative

529 college savings plans
These tax-advantaged accounts are designed to pay for qualified higher education expenses. They can be used for a student of any age.

Uniform Gifts to Minors/Uniform Transfers to Minors Accounts (UGMA/UTMA)
Custodial accounts invested in the child's name, these accounts can be used for any expense for the benefit of the child.

Coverdell Education Savings Accounts 
Formerly known as the Education IRA, these accounts offer tax-deferred growth and are designated for a child’s educational expenses. They are not offered by Fidelity.

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529 College Savings Plans Custodial Accounts (UGMA/UTMA) Coverdell (not offered by Fidelity)

Tax advantages

Any earnings grow tax-deferred.
Distributions are federal income tax-free.
Gift and estate tax benefits

Contribution details

Contribution minimum
Contribution maximum
Low impact on financial aid
Qualified withdrawals limited to education expenses
Contributions not limited by the income of the account owner

Account management

Beneficiary can be changed.
Account owner maintains control over distribution of assets.
No age limit for the beneficiary (child)
Professionally managed portfolio

Next step

Open an account.
Get started with a Fidelity-managed 529 plan or custodial account.

1. Participant must be 18 years or older, must be a U.S. citizen and must have a Social Security number or Tax ID.
2. In 2016, for children under age of 19 (and full-time students under age 24) with no earned income (or income exceeding one-half of his or her support), usually the first $1,050 of investment income is exempt from federal income tax under the child's standard deduction, the next $1,050 is taxed at the child's rate, and the amount above $2,100 is taxed at the parents' rate.
3. In order for an accelerated transfer to a 529 plan (for a given beneficiary) of $70,000 (or $140,000 combined for spouses who gift split) to result in no federal transfer tax and no use of any portion of the applicable federal transfer tax exemption and/or credit amounts, no further annual exclusion gifts and/or generation-skipping transfers to the same beneficiary may be made over the five-year period, and the transfer must be reported as a series of five equal annual transfers on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. If the donor fails to survive the five-year period, a portion of the transferred amount will be included in the donor's estate for estate tax purposes.
4. Periodic investment plans do not guarantee a profit or protect against a loss in a declining market.
5. The Fidelity-managed 529 plan contribution caps are currently $350,000 for the DE plan, $375,000 for the MA and NH plans, and $431,000 for the AZ plan.
6. College-related expenses refer to qualified higher education expenses as defined in section 529 of the Internal Revenue Code.
7. For 529 accounts only, the new beneficiary must have one of the following relationships to the original beneficiary: 1) a son or daughter; 2) stepson or stepdaughter; 3) brother, sister, stepbrother, or stepsister; 4) father or mother or an ancestor of either; 5) stepfather or stepmother; 6) first cousin; 7) son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law; or 8) son or daughter of a brother or sister. The spouse of a family member (except a first cousin's spouse) is also considered a family member. However, if the new beneficiary is a member of a younger generation than the previous beneficiary, a federal generation-skipping tax may apply. The tax will apply in the year in which the money is distributed from an account.
Portfolios are managed by Strategic Advisers, Inc., a registered investment adviser and Fidelity Investments Company.

IRC Section 529 does not allow participants to have direct or indirect control over the investments in a 529 plan.

The UNIQUE College Investing Plan, U.Fund College Investing Plan, Delaware College Investment Plan, and the Fidelity Arizona College Savings Plan are offered by the State of New Hampshire, MEFA, the State of Delaware, and the Arizona Commission for Postsecondary Education, respectively, and managed by Fidelity Investments. If you or the designated beneficiary is not a New Hampshire, Massachusetts, Delaware, or Arizona resident, you may want to consider, before investing, whether your state or the designated beneficiary's home state offers its residents a plan with alternate state tax advantages or other benefits.
The tax and estate planning information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. Fidelity does not provide legal or tax advice. Fidelity cannot guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws which may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of such information. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. Fidelity makes no warranties with regard to such information or results obtained by its use. Fidelity disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Always consult an attorney or tax professional regarding your specific legal or tax situation.

Units of the portfolios are municipal securities and may be subject to market volatility and fluctuation.

Please carefully consider the plan's investment objectives, risks, charges, and expenses before investing. For this and other information on any 529 college savings plan managed by Fidelity, contact Fidelity for a free Fact Kit, or view one online. Read it carefully before you invest or send money.