Owner and Control of Account / Income Phaseout	Guideline for Use	Contribution & US Gift Tax	Tax Treatment	Penalty for Withdrawal or Non-Qualified Withdrawal	Estate Tax
Contributor makes investment decisions for account. Single filters: $95-110k (phased out) Joint filters: $150-160k (phased out)	Must use for qualified higher education expenses by the time the beneficiary reaches age 30. You cannot contribute to both an Education IRA and a qualified State tuition program (QSTP) like VPEP and VEST in the same tax year.	500 per designated beneficiary under 18. Maximum $500 annual contribution will not trigger federal gift tax unless combined with other gifts.	Qualified distributions are exempt from federal income tax.	Earnings taxed as ordinary income to contributor and subject to federally mandated 10% of earnings penalty if distributions not used for qualified higher education expenses.	Amounts contributed are removed from the donor's gross estate but included in the beneficiary's gross estate.

Owner and Control of Account / Income Phaseout	Guideline for Use	Contribution & US Gift Tax	Tax Treatment	Penalty for Withdrawal or Non-Qualified Withdrawal	Estate Tax
Record Owner. None.	None.	None.	Earnings are taxed in the year realized.	None.	Included in account owner's gross estate.