http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/ Personal Finance Blog, Your Guide to Financial Fitness Thu, 09 Feb 2012 20:13:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-34280 Kimneese5 Thu, 08 Dec 2011 16:53:00 +0000 http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-34280 ....and that was of course intended as a joke... but ya never know! : ) ….and that was of course intended as a joke… but ya never know! : )

]]> http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-34279 Kimneese5 Thu, 08 Dec 2011 16:52:00 +0000 http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-34279 my understanding is that an ESA becomes the child's money at age 30 or so, whether they go to school or not. (in other words the account is in their name, not ours as the parents). By contrast, the 529 is the PARENT'S account, and the child cannot have access to it at any age if they chose not to go to college. Can you confirm this? Of course I plan on my 1 and 2 year olds to be perfect little angels...but should one of them decide to grow up and run away with their meth-head boyfriend, I don't want them getting all the money when they turn 30. Thanks! my understanding is that an ESA becomes the child’s money at age 30 or so, whether they go to school or not. (in other words the account is in their name, not ours as the parents). By contrast, the 529 is the PARENT’S account, and the child cannot have access to it at any age if they chose not to go to college. Can you confirm this? Of course I plan on my 1 and 2 year olds to be perfect little angels…but should one of them decide to grow up and run away with their meth-head boyfriend, I don’t want them getting all the money when they turn 30. Thanks!

]]> http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-31779 Kira Botkin Tue, 14 Jun 2011 01:40:00 +0000 http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-31779 Yes, as long as you meet the income restrictions on the ESA, you can contribute the full amount to both plans. Yes, as long as you meet the income restrictions on the ESA, you can contribute the full amount to both plans.

]]> http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-31780 Kira Botkin Tue, 14 Jun 2011 01:40:00 +0000 http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-31780 Yes, as long as you meet the income restrictions on the ESA, you can contribute the full amount to both plans. Yes, as long as you meet the income restrictions on the ESA, you can contribute the full amount to both plans.

]]> http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-31781 Kira Botkin Tue, 14 Jun 2011 01:40:00 +0000 http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-31781 Yes, as long as you meet the income restrictions on the ESA, you can contribute the full amount to both plans. Yes, as long as you meet the income restrictions on the ESA, you can contribute the full amount to both plans.

]]> http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-31771 Mdamaryan Mon, 13 Jun 2011 17:33:00 +0000 http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-31771 Are you allowed to contribute to both plans? Are you allowed to contribute to both plans?

]]> http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-10625 Mac Tue, 30 Mar 2010 04:20:11 +0000 http://www.moneycrashers.com/the-difference-between-an-esa-and-a-529-college-savings-plan/#comment-10625 Never even knew about the ESA plan before, so thanks! But I'm glad we started our son on a 529 plan instead. I like that it's less flexible as there are no plans for private schooling and I really would like him to use the money for a post-secondary school. And the limited qualified expenses this plan allows is actually a plus! No questionable items will be purchased with this money as we'll know exactly what it'll be used for. To each their own. Never even knew about the ESA plan before, so thanks! But I’m glad we started our son on a 529 plan instead. I like that it’s less flexible as there are no plans for private schooling and I really would like him to use the money for a post-secondary school. And the limited qualified expenses this plan allows is actually a plus! No questionable items will be purchased with this money as we’ll know exactly what it’ll be used for. To each their own.

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