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Get a Head Start on Education Funding to Tackle Rising College Costs
For the 2007-08 academic year, average college tuition and fees per year were $6,185 for public universities and $23,712 for private — up 6.6% from just last year.*

Too often, these rising college costs stand between your children and their dreams for the future. Even if they excel in school, your children still might not be able to attend the college of their choice. The lack of an education funding plan often forces parents and students to make a difficult choice — take on the burden of student loan debt or avoid college altogether.

Choose an Education Funding Plan That's Right for You The chart below compares some of the most widely used education funding alternatives. Your financial advisor can help you decide which ones work for your unique situation.

Features	529 College Savings Plans¹	Coverdell Education Savings Account²	Custodial Accounts (UGMA/UTMA)³	Parent-Owned Taxable Brokerage Accounts
Income limitations for participation	None	Single filers: $95,000- $110,000; joint filers: $190,000-$220,000	None	None
Control of the account	Account owner	Custodian controls until beneficiary turns 30	Custodian controls until age of termination	Account owner
Annual contribution limits	$13,000 per beneficiary ($26,000 for a married couple)⁴	$2,000 per designated beneficiary younger than 18	$13,000 ($26,000 for couple) without being subject to federal gift tax treatment	None
Current taxation of earnings	None		If child is younger than 19, or a full-time student under age 24 in 2009, the "kiddie tax" applies	Taxed at the owner's rate
Qualified distributions are federal-tax-free	Yes	Yes	N/A	N/A
May have state tax benefits	Yes	Yes	No	No
Taxation/penalty for withdrawals for nonqualified expenses	Earnings portion of nonqualified withdrawals is taxed as ordinary income to the plan participant and is subject to a federally mandated 10% penalty (earnings only). Penalty-free withdrawals are permitted in the event of scholarship or death or disability of the beneficiary.		N/A	N/A
Investment alternatives	A choice of portfolios managed by professional fund managers	Owner (custodian) chooses investments
Can be used for college expenses	Yes	Yes	Yes	Yes
Can be used for primary and secondary school expenses	No	Yes	Yes	Yes
Can change beneficiaries	Yes	Yes	No	N/A

Please consider the investment objectives, risk, charges and expenses carefully before investing in a 529 savings plan. The official statement, which contains this and other information, can be obtained by calling your financial advisor. Read it carefully before you invest.