How does the UA Plan compare to other investment alternatives?

When you're looking to help your children realize their college dreams, the UA Plan offers distinct advantages:

  • You control the account.
  • Your account's potential growth is tax-deferred.
  • Distributions are exempt from federal income tax if used for qualified education expenses.
  • It's possible to make larger annual contributions without incurring the federal gift tax.
  • You can roll over funds from another plan, whether it's a different 529 plan, Coverdell ESA, Series EE Bonds, or Series I Bonds.
  • You can liquidate UGMAs or UTMAs and invest those funds in a 529 plan. Earnings may be subject to federal and state taxes.
  • There are no income restrictions or limits to investing in a 529 plan.

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College Savings Comparison Chart

If you are not an Alaska resident, you should compare this Plan with any 529 college savings plan offered by your home state or your beneficiary's home state and consider, before investing, any state tax or other benefits that are only available for investments in the home state's plan. You can call 1-866-277-1005 or visit the forms section of our site to request a Plan Disclosure Document, which includes investment objectives, risks, fees, charges and expenses, and other information that you should read and consider carefully before investing. T. Rowe Price Investment Services, Inc., Distributor/Underwriter.