Alternative methods for saving for college include:
Uniform Gifts to Minors Act accounts (UGMAs) The UGMA allows money to be held in a custodian’s name for the benefit of a minor. The money is taxed at the child’s tax rate. When the child reaches the age of 18, they can use the money for any purpose, not just education.
Uniform Transfers to Minors Act accounts (UTMAs)UTMA are an extension of Uniform Gifts to Minors Act accounts. In these account gift can be made to minors without requiring a guarding be appointed. The tax free limit is $12,000.
Educational IRA's (Coverdell Education Savings Accounts)This is a tax advantage investment account similar in some respects to a 529 Plan. One main difference is that the money can be used for primary and secondary school and not just college.
