529 vs. UTMA

Every Dollar Invested Education • Updated 2025-08-29

529 plans are tax-advantaged for education; UTMAs are flexible for broader goals. Many families use both.

Feature	529	UTMA/UGMA
Primary use	Qualified education	Any purpose for the child
Tax benefits	Tax-free growth for qualified expenses	Taxed annually (kiddie tax rules)
Control	Parent/owner retains control	Child assumes control at majority

Educational content only. Not investment or tax advice. Consult a professional for your situation.