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What advantages does a 529 plan offer over an UGMA or UTMA?

April 26, 2017advantages Offer Plan UGMA UTMA

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What advantages does a 529 plan offer over an UGMA or UTMA?

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• The Account Holder maintains control over the account. • Any account growth is tax-deferred. • Distributions are exempt from federal income tax when used for qualified education expenses. • It’s possible to make larger annual contributions without incurring the federal gift tax.