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Exactly! Then what!!


Start a Coverdell ESA - it's like an IRA, but if your income exceeds the limits, you can give the money to the child to deposit. At least, that's my understanding.


And when those limits are exhausted, simply save in a taxable account. I think sometimes people forget that just because there are limits to accounts such as college savings vehicles or retirement vehicles, there is always the option to simply save outside of those in a taxable account.

In the case of college, I find a taxable account to have lots of advantages particularly the flexibility to decide how much of those savings to use for college or to not use it for college at all and redirect it to retirement or the kid's wedding or some other thing.

I have twins, so my situation is a little different in that even in the cases where I can change the beneficiary, I'd be changing it to the other twin, but they'll be going to school at the same time. Plus, I don't honestly expect to spend the same dollar amount on each child, so for me, having the money in a taxable account under my name is my preferred choice so that I can decide what to spend on each child, if I should be spending it at all, and if the money ends up not being used because someone chooses not to go to college, I can reallocate that to other things of my choice.

It's interesting to me that I seem to find college planning and saving more challenging than retirement savings because of the options available, the twin issue, and my general leaning towards maximum flexibility and choices for spending my money.

Just more food for thought for others who are also trying to figure out the best way to save for college.
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