Saving for kids college education

529 Plans: Most states offer 529 college saving plans. This is a popular way to save for college. Investments grow free of federal and state taxes and tax on earnings are deferred until withdrawal. Money withdrawn to pay for education expenses is free from state and federal taxes. You maintain the complete control of the account and can name a successor account owner. Maximum contribution limit to a plan currently is $350,000. You may be able to contribute $13,000 ($26,000 for couple) annually without triggering gift tax. Consult your tax advisor.

Coverdell Education Savings Account: Based on your annual income, you may be eligible to contribute up to $2,000 a year. Earnings grow tax free. Funds can be used to pay for K through 12 education as well as college. Qualified educational expenses are federal tax free.

UGMA/UTMA Custodial Accounts: They were more popular before the introduction of 529 Plans. The beneficiary gain control of funds at age of maturity, 18 or 21 depending on the state you live. Be aware of tax consequences at withdrawal.

Other: You can open a Roth IRA/IRA or other savings account in your name to use for college education of your kids.