See the CollegeCounts difference
With so many ways to save for college, there’s a lot of information out there. View the comparison chart below to see how the CollegeCounts 529 Fund stacks up against other options.
|Key Factors||CollegeCounts 529 Fund||Coverdell Education Savings Account (ESA)||UGMA/UTMA||Mutual Funds|
|Contribution limit||$475,000 maximum account balance1||$2,000 per beneficiary per year||None||None|
|Alabama state income tax-deductible contributions||Yes
(up to $10,000)2
|Change of beneficiary allowed||Yes||Yes||No||N/A|
|Age restrictions for contributions||None||Before age 183||N/A4||None|
|Age restrictions for withdrawals||None||Before age 303||N/A4||None|
1The combined maximum account balance limit for the CollegeCounts 529 Fund and all other Section 529 programs established and maintained by the State of Alabama for a particular beneficiary cannot exceed $475,000. Although account balances can grow beyond that amount, no additional contributions can be made once the balance reaches $475,000.
2The amount contributed by an Alabama taxpayer during a tax year is deductible from Alabama income in an amount not to exceed $5,000 for a single return or $10,000 for a joint return for that tax year. If you also contribute to another Alabama 529 account, your maximum total deduction on all contributions is still $5,000 per year ($10,000 for married couples filing jointly). The amount of any deduction previously taken for Alabama income tax purposes is subject to recapture in the event an Account Owner takes a Nonqualified Withdrawal from an Account or if such assets are rolled over to a non-Alabama 529 plan. Please consult with your tax professional.
3Contributions can be made for a beneficiary from birth to age 18. The account may remain open until the beneficiary reaches age 30, with certain limitations.
4Custodianship typically terminates when a minor reaches age 18 or 21.
5ESA eligibility phases out at $95,000–$110,000 adjusted gross income ($190,000– $220,000 for joint filers). Please check with your tax advisor for details and information regarding your specific situation.