What is the difference between a 529 and a Coverdell? Which does FutureAdvisor recommend?

We find that Coverdells and 529s are both useful, depending on what your education goals are. A Coverdell has tax-free distributions and can be used for eligible primary and secondary school education expenses. A 529 plan is great because the contribution limits are higher than with a Coverdell but the funds are restricted to use for post-secondary education (aka, college). Many states may include tax deductions for 529 contributions.

For recommendations on which type of college savings account to open, please follow the link.