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Has anyone found any great advantage or dis-advantage using one or the other?

In 2001, when I did my research and made my choice, the 529 was the clear winner over the Coverdell because of the contribution limits. There was no practical limit to the 529; the Coverdell was limited to $500 a year at that time. I believe the laws have changed since then.

We chose the 529 plan sponsored by the State of Alaska, administered by T. Rowe Price. Rationale at the time:

• I was familiar with T. Rowe Price and was confident they wouldn’t screw this up.
• The funds in the target date plans were reasonable choices. Some other plans (looking at you, Fidelity) seem to be stuffing funds that didn’t belong in the target date plan because I don’t know why.
• Texas does not, and likely never will, have a state income tax. I was confident Alaska wouldn’t try to tax my 529 withdrawals in the future. (This was an outlier concern at the time that never came to pass.)

We started DD’s 529 the month she was born. $100 a month. We should have saved more. It still grew to $38k over that time. (We prioritized retirement savings over college savings.) Between her scholarships, the 529 savings, and our other assets, we’ll be able to cover this.

Hope this helps,

- HCF
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