Education Account Types - TD AMERITRADE

Education Account Types Comparison
	529	Coverdell ESA	Custodial Uniform Gift to Minors Act (UGMA)/Uniform Transfer to Minors Act (UTMA)
Description	Section 529 college savings plans are established by states under section 529(b)(A)(ii) of the Internal Revenue Code as “qualified tuition programs” through which individuals make investments for the purpose of accumulating savings for qualifying higher education costs of beneficiaries.	A Coverdell ESA is a savings plan created for the purpose of paying a student’s qualified educational expenses. Contributions are allowed for individuals under the age of 18. Contributions are not tax deductible, but qualified distributions are tax-free.	The Uniform Transfer to Minors Act (UTMA) and the Uniform Gift to Minors Act (UGMA) provide a simple way to transfer property to a minor without a formal trust, and without the restrictions applicable to the guardianship of a minor's property. UTMAs and UGMAs are custodial accounts which allow a minor to own cash or securities that are controlled by a custodian until the minor meets the age of termination for the state in which the account was set up. Assets in the account become an irrevocable gift to the minor under the Uniform Gift to Minors Act or the Uniform Transfer to Minors Act (UGMA/UTMA). New UGMA accounts may be established in South Carolina and Vermont only. However, other states may have grandfathered permission for UGMAs. TD AMERITRADE permits custodians to take money out of custodial accounts, and will make the check payable to the custodian FBO the minor. Tax consequences are the custodian’s responsibility. The deposit check should be made payable to TD AMERITRADE FBO child's name or account number.
Client profiles	Cash	Cash, Cash and Covered Calls only
Investment choices	Choices vary by individual plan. Details would be available in the plan's enrollment handbook.	Stocks (NYSE, NASDAQ, Canadian Exchange as well as the Over-the-Counter and Pink Sheet Stocks) Mutual Funds Exchange Traded Funds (ETFs) Bonds Write Covered Calls Purchase Long Options CDs Unit Investment Trusts Real Estate Investment Trusts
Notable account features	Not Applicable	Portfolio Planner WealthRuler Command Center 2.0 StrategyDesk QuoteScope Trade Triggers Conditional Orders Advanced Analyzer Market Motion Detector SnapTicket Streaming News S&P Reports Market Edge Link to Microsoft Money or Quicken programs Gain/Loss Tracker (free to all clients) GainsKeeper (reduced rate to TD AMERITRADE clients)
Minimums and fees	No income limitations Contributions must be made in cash Each state can establish their own minimums and maximums	Account Minimums $2,000 maximum per designated beneficiary	Account Minimums No minimum funding required to open an account Accounts funded with less than $1,000 are not eligible for any promotions No maintenance fees