Ruth would like to establish a college fund of $20,000 for her grandson, age 1. She has heard about 529 plans and Coverdale college fund and is wondering how either could be used to establish a fund for the grandchild. Ruth is in a high tax bracket and would like to invest the funds in some kind of account that allows the earnings to be deferred as long as it is used for the grandchild's college education. You tell Ruth you will research ways she can achieve her goals, prepare a recommendation for Ruth.