Paying for college - 529 OR Coverdale IRA? Which is better...?

[masmdu]

Grandpa wants to start an account for my 8 month old boy...we are trying to decide which is better a 529 or Coverdale IRA.

Any help would be appreciated.

[masmdu]

1. kick...Anybody?

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[carpetbagger]

2. My bad advice...

I'm not the most knowledgeable person on this, but here goes.

Look at the link below. Note the income limits and contribution limits being different between the two programs. Also, Coverdale can be used for high school tuition.

529 phases out in 2010 or something like that unless it's renewed (which would make the growth taxable). While there's a fat chance that it won't be renewed, there it is.

Each state's 529 is different from a state tax deduction point of view and from an investment choice point of view. That will probably make a difference.

Also, prepaid plans are often called "529's". They are a different plan than a 529 saving plan.

http://www.glsainc.com/college.shtml