In an article published by U.S. News & World Report on May 11, 2016, Jamie Canup discusses Coverdell accounts and how they compare to 529 plans. After being pushed to the side for years, Coverdell accounts are starting to get some attention. Canup explains, “Coverdell accounts are useful for those who are saving for private tuition and other costs associated with elementary and secondary school, since 529 plans can’t be used for those expenses.” The article measures Coverdell accounts against 529 plans in many different aspects, including fees on the account. The wide investing options available to Coverdells may allow you to find fund companies or other providers with lower administrative expenses than you’d face with a 529 plan, but that isn’t guaranteed, Canup says. Fees could be an issue with a Coverdell that has a low account balance. So shop around. For the full article, you may click here.
Kristen M. Chatterton