College savings plans are a great way to save for your child's future. There's no doubt that the choices you make today will dramatically impact your child's future. The most important thing you can do now is take a careful look at the choices available to you, and determine the best way to reach your goal.

How much is enough?
The first step is to determine how much you need to save, and TD AMERITRADE provides a college planner to help you do just that. Once you've done that, take a look at the table below to see the benefits of different savings programs. We offer Coverdell Education Savings Accounts (formerly Education IRAs), the TD AMERITRADE College Savings Plan, also known as a 529 plan, as well as custodial accounts. See the chart below to compare these offerings.

	TD AMERITRADE 529 College Savings Plan	Custodial	Coverdell Education Savings Account
Is there a contribution limit per beneficiary?	$360,000 maximum lifetime contribution.	No.	Yes. $2,000 per year.
How are distributions for qualified higher education expenses taxed?	Withdrawals for qualified higher education expenses are Federal tax-free.	Investment income is subject to federal income that may be taxed at the child's rate.	Withdrawals for qualified higher education expenses are Federal tax-free.
Can you change the beneficiary of the account?	Yes. A transfer to another member of the beneficiary’s family is allowed.	No. This is an irrevocable gift to the child.	Yes. A transfer to another member of the beneficiary’s family is allowed.
Are there any income limits restricting who is eligible to contribute?	No.	No.	Eligibility for donors phases out between $190,000 and $220,000 AGI for joint filers and between $95,000 and $110,000 AGI for single filers.
How can funds be used?	Funds can be used at eligible schools nationwide. Withdrawals for qualified expenses receive favorable tax treatment. Non-qualified withdrawals may be subject to penalties and taxation.	The account must be used for the minor’s benefit. When the child attains the age of majority, the child controls the funds.	Funds can be used at eligible schools nationwide. Withdrawals for qualified expenses receive favorable tax treatment. Non-qualified withdrawals may be subject to penalties and taxation.
How is the account treated for estate tax purposes?	The value of the account is removed from the account owner’s taxable estate.	The value of the account is included in the custodian’s taxable estate.	Contributions to a Coverdell education savings account are treated as a completed gift from the contributor to the beneficiary.

TD AMERITRADE, Division of TD AMERITRADE, Inc., member FINRA/SIPC. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. TD AMERITRADE is a trademark jointly owned by TD AMERITRADE IP Company, Inc. and The Toronto-Dominion Bank. © 2008 TD AMERITRADE IP Company, Inc. All rights reserved. Used with permission.