Utah does not give a tax deduction for a 529 plan, and for Coverdell (ESAs) there is no deduction either. HOWEVER, Utah has a tax credit of 5% of the max contribution up to $192 per beneficiary. Also, the withdrawals are tax-free, so that makes up for the lack of deductions available.

The website was the one listed on the project (www.savingforcollege.com) and it gave a good comparison between 529s and Coverdells. Here are the main points we need to consider if we want to decide between these two (which I would recommend after doing the reading on them):

Coverdell has way more flexibility in investments and its funds can be used for K-12 schooling costs. 529 plans have a pretty rigid structure for their investment plans and a limit of $10,000 per beneficiary during K-12 schooling that can only be used for tuition purposes.