College Savings Plan: 529 vs Custodial Account Comparison
- College Board, Trends in College Pricing
- National Center for Education Statistics (NCES)
- Federal Student Aid (StudentAid.gov)
All figures are estimates based on publicly available data. Use the linked calculators to model your own situation.
Related Calculators
Frequently Asked Questions
In 2026 college savings plan 529 vs custodial comparison, which account type is better for most families?▼
529 for most, primarily saving for education. The tax, state tax deduction, financial aid treatment, and control advantages usually win. UTMA is only for flexibility-first scenarios.
How badly do custodial accounts hurt financial aid eligibility?▼
Severely: they count as student assets, assessed at 20% of value. 4x the impact of a parent-owned 529 assessed at only 5.64%.
Can I convert an existing UTMA into a 529 later?▼
Yes via a UTMA 529 account, which moves growth under tax-advantaged status while the beneficiary still legally owns the funds. You cannot change beneficiaries.
What happens to leftover 529 money after graduation or scholarships?▼
Options include changing beneficiaries, using for grad school, rolling up to $35k lifetime into a Roth IRA, or a non-qualified withdrawal with penalty on earnings only.
What is a good college savings target by age?▼
Rough baseline: age × $2,000 for in-state public, ×$3,000 for private, as a starting line. Run a college tuition cost calculator projection for exact numbers.