Compare Savings Plans | Washington College Savings Plans

Compare Different Types of College Savings Plans

	GET 529 Prepaid Tuition Plan¹	DreamAhead 529 College Investment Plan¹	Other 529 College Savings/Investment Plans¹	Coverdell Education Savings Account² (Education IRA)	Custodial Account³ (UGMA/UTMA)	Gerber Life College Plan⁴
Does this account grow tax-free?	Yes, withdrawals are tax-free when used for qualified higher education expenses.⁵	Yes, withdrawals are tax-free when used for qualified higher education expenses.⁵	Yes, withdrawals are tax-free when used for qualified higher education expenses.⁵	Yes, withdrawals are tax-free when used for qualified higher education expenses⁵ or elementary / secondary education.	No, regular tax rules apply. There are no specific tax benefits if used for higher education expenses.	No, regular tax rules apply. There are no specific tax benefits if used for higher education expenses.
Who can participate?	Either the student or account owner must be a Washington resident when enrolling. The account owner may be an individual, trust, corporation, partnership or other entity. The account owner does not have to be related to the student.	Non-Washington residents can participate. The account owner may be an individual, trust, corporation, partnership or other entity. The account owner does not have to be related to the student.	Rules vary by plan.	Your modified AGI⁶ must be less than $110,000 if you file an individual tax return ($220,000 for a joint tax return).	Everyone.	Insured party must be aged 18 to 75. Applicants are required to complete a health assessment, as it is a life insurance product. Availability of certain payment plans and the amount of total premiums paid may differ based on age, sex, and medical history of the insured.
How much can I contribute?	Total units cannot exceed 800 per student. For example, $96,128 if contributing via Lump Sum at the 2023-24 unit price of $120.16.	Contribute up to $500,000 (maximum total account balance between DreamAhead and GET).	Varies by state plan. The highest limit is about $500,000 per student.	$2,000 annually.	Unlimited.	The maximum payout is $150,000 per policy.
What can withdrawals be used for?	To pay qualified higher education expenses.⁵ The student must be enrolled at least half-time to pay room and board.	To pay qualified higher education expenses.⁵ The student must be enrolled at least half-time to pay room and board.	To pay qualified higher education expenses.¹⁵ The student must be enrolled at least half-time to pay room and board.	To pay expenses associated with higher education as well as primary and secondary education. The student must be enrolled at least half-time to pay room and board.	Rules vary by state, but withdrawals can be made for any reason.	Withdrawals can be made for any reason.
Can I change student beneficiaries?	Yes, within the immediate family, including cousins.	Yes, within the immediate family, including cousins.	Yes, within the immediate family, including cousins.	Yes, if the new student is under the age of 30 and the original student gives consent.	No.	Yes.
Who are the best candidates for this type of account?	Those who prefer a guaranteed return based on the rate of tuition inflation.	Those who want to contribute to a tax-free college fund and have some control over their investments.	Those who want to contribute to a tax-free college fund and have some control over their investments.	Parents who want maximum control over their investment options and don't have more than $2,000 to contribute annually.	Those who want to transfer assets to a young student and are comfortable turning over control once the student is of age.	Those who want a life insurance policy with a cash payout upon policy maturity.
Who controls the account?	The individual opening the account (account owner).	The individual opening the account (account owner).	The individual opening the account (account owner).	Either the account owner or the student may have control depending on how the account is set up.	Until the student is of age, a Custodian controls the account. Once the student is of age, he/she gains control of the account.	The policy holder.
Is there a guarantee?	Yes. Your account is guaranteed by the State to keep pace with resident undergraduate tuition and state-mandated fees at the most expensive public university in Washington. The dollar value of your account is not guaranteed.	No. The value of the account is based on the portfolio value at the time of withdrawal or disbursement.	No. The value of the account is based on the portfolio value at the time of withdrawal or disbursement.	No. Depending on the type of account (savings/brokerage), the value of the account is based on interest earned or the portfolio value at the time of withdrawal or disbursement.	No. Depending on the type of account (savings/brokerage), the value of the account is based on interest earned or the portfolio value at the time of withdrawal or disbursement.	Yes. This is an endowment life insurance policy with a pre-selected benefit that is paid out upon maturity or upon the death of the insured party.

¹A qualified tuition program (QTP) under Section 529 of the Internal Revenue Code. Plans vary by state.
² non-deductible plan that, with certain income and contribution limits, allows you to invest for college-related expenses.
³A brokerage account with custodial account registration that invests in mutual funds and individual securities, including stocks and bonds, on behalf of a minor.
⁴ An endowment life insurance policy sold by the Gerber Life Insurance Company, with a face-value that is paid out upon policy maturity.
⁵Qualified higher education expenses include tuition, fees, books, supplies, equipment required for enrollment or attendance, and, in most cases, room and board.
⁶AGI: Adjusted Gross Income from your federal tax return.