Think the only way you'll be able to foot your son's or daughter's future college bills is by winning the lottery? Think again. While the soaring costs of college can be overwhelming, a bit of careful planning can help you leap over this financial hurdle.

Still, coming up with a game plan can also be terribly confusing. That's where our College Saving Superpage comes in. We've broken down your college-savings options into two categories: your investment options (which you'll see below) and your tax breaks, including the Lifetime Learning Credit or the Hope Scholarship Credit (located on The College Tax Breaks Superpage. And we've created a 529 calculator to help you evaluate the myriad of 529 plans out there.

And then there's the question of whether parents should invest in a 529 plan or an education savings account. It's not such an easy decision. Some parents found out the hard way that their 529 savings plan wasn't as safe as their broker once claimed it to be. During the financial crisis, 529 plans in states like Ohio, Rhode Island and North Carolina lost around 20% of their value. Even worse, many 529 plans did't invest as conservatively as they should, especially when the child is only a year or two away from heading off to college.

Does the Account Grow Tax-Free?

Taxable Investment Account in Parent's Name: No. Regular tax rules apply. For investments held more than one year this typically means capital gains are taxed at a maximum federal rate of 15% or 20%. Ditto for dividends. For short-term gains and interest, your regular tax rate (up to 39.6%) applies.

529 Qualified Tuition Plan (QTP): College-savings account: Yes. Withdrawals are federally tax-free when used for qualified higher-education expenses. In most states, withdrawals are also state-tax-free. Some states also offer in-state residents a state-tax deduction or credit on contributions. (In some cases, the state-tax break is limited to a certain dollar amount.) Earnings on nonqualified withdrawals will be taxed as ordinary income and are subject to a 10% IRS penalty. The penalty may be waived if the account beneficiary (the college-bound child) receives a scholarship, becomes disabled or dies. Just keep in mind that the earnings you rack up over the years can be quickly decimated if the stock market plunges and your 529 plan is still heavily exposed to stocks. Find out what a plan's investment allocation strategy is before you put money into it.

529 Qualified Tuition Plan (QTP): Prepaid tuition plan: Yes. Withdrawals from state-sponsored plans are federally tax-free when used for qualified higher-education expenses. In most states, withdrawals are also state-tax-free. Some states also offer in-state residents a state-tax deduction or credit on contributions. (In some cases, the state-tax break is limited to a certain dollar amount.) Earnings on nonqualified withdrawals will be taxed as ordinary income and are subject to a 10% IRS penalty. The penalty may be waived if the account beneficiary (the college-bound child) receives a scholarship, becomes disabled or dies. Qualified withdrawals from the Independent 529 plan, which targets select private schools, are also federally tax-free for qualified expenses.

Coverdell Education Savings Account (ESA): Yes. Withdrawals from tax-free when used for qualified higher-education expenses as well as qualified elementary- and secondary-school expenses. Earnings on nonqualified withdrawals are taxed as ordinary income and subject to a 10% penalty.

Custodial Account: UGMA/UTMA: No. Regular tax rules apply, although generally at the child's tax rate. If the beneficiary (the college-bound child) is under age 24, he or she might be subject to the kiddie tax if annual investment income and gains exceed $2,000 (for 2013).

Crummey Trust: No. Regular tax rules apply, although generally at the child's tax rate. If the beneficiary (the college-bound child) is under age 24, he or she might be subject to the kiddie tax if annual investment income and gains exceed $2,000 (for 2013).

Who's Eligible?

Taxable Investment Account in Parent's Name: Anyone

529 QTP: College-savings account: With many state plans, anyone is eligible, regardless of where they live. There are exceptions, however. In some cases, the contributor or student must be state resident.

529 QTP: Prepaid tuition plan: With many state plans, anyone is eligible, regardless of where they live. There are exceptions, however. In some cases, the contributor or student must be state resident.

Coverdell ESA: Eligibility phases out for contributors who are married, filing jointly with AGIs between $190,000 and $220,000 and for singles with AGIs between $95,000 and $110,000. Children can contribute to their own accounts.

Custodial Account: UGMA/UTMA: Anyone

Crummey Trust: Anyone

How Can I Allocate the Account?

Taxable Investment Account in Parent's Name: However you'd like.

529 QTP Plan: College-savings account: You're limited to the handful of mutual funds provided in the plan. Some plans will automatically adjust investments to a more conservative allocation as deadline to college approaches. Once the market fully recovers, parents whose kids are one or two years away from starting college may want to stash extra cash in certificates of deposits and money market accounts that guarantee a small return.

529 QTP Plan: Prepaid tuition plan: Allocation is set by plan. Typically the account is intended to grow at the rate of tuition inflation at the designated schools.

Coverdell ESA: However you'd like.

Custodial Account: UGMA/UTMA
However you'd like.

Crummey Trust: However you'd like.

What Can Withdrawals Be Used For?

Taxable Investment Account in Parent's Name: Anything.

529 QTP: College-savings account: Post-secondary education. Expenses include: tuition, fees, books, supplies, equipment required for enrollment or attendance, and in most cases, reasonable costs of room and board (provided the beneficiary is enrolled at least half the time).

529 QTP: Prepaid tuition plans: Post-secondary education. Most plans cover tuition and fees only. Select states offer options to prepay additional expenses, such as dormitory costs.

Coverdell ESA: Expenses related to higher education as well as elementary- and secondary-school expenses, including costs to attend private and religious schools. Qualified expenses include books, supplies and equipment as well as contributions to a section 529 QTP and, if the designated beneficiary is enrolled at least half the time at an eligible school, room and board.

Custodial Account: UGMA/UTMA: If beneficiary is not yet of age, withdrawals can be taken for his or her benefit generally for any reason, although rules vary by state. Once beneficiary is of age, he or she gains control. Withdrawals can then be used for anything.

Crummey Trust: Whenever a contribution is made, the beneficiary is permitted to withdraw that contribution within a set period of time (often 30 days). If the contribution isn't withdrawn within that window, then the beneficiary can't tap into the account until he or she reaches the age designated in the trust document, at which time the beneficiary takes control of the account. Trustee can withdraw funds for educational expenses or other expenses that benefit the beneficiary.

What Are the Financial-Aid Implications?

Taxable Account in Parent's Name: Viewed as a parental asset under the federal methodology (which is used for federal and most state aid) and institutional methodology (generally used by private colleges for their endowment funds). With the federal methodology, this means that a financial-aid officer could count up to 5.6% of the account balance when assessing your child's financial-aid eligibility. With the institutional methodology, net assets will be assessed at a rate between 3% and 5%, depending on the total amount. Some private colleges may assess need differently.

529 QTP: College-savings account: Under the federal methodology, viewed as an asset of the contributor. If the parent set up the account, this means that a financial-aid officer could count up to 5.6% of the account balance when assessing your child's financial-aid eligibility. Under the institutional methodology, this is viewed as a parental asset, which can be assessed at a rate between 3% and 5%, depending on the total net asset amount. Some private colleges may assess need differently.

529 QTP: Prepaid tuition plan: Same as above.

Coverdell ESA: Same as above.

Custodial Account: UGMA/UTMA: Viewed as the beneficiary's asset (i.e., the student's). Children are typically expected to contribute 35% of their assets to public schools; 25% to private. Some private colleges may assess need differently.

Crummey Trust: Viewed as the beneficiary's asset (i.e., the student's). Children are typically expected to contribute 35% of their assets to public schools; 25% to private. Some private colleges may assess need differently.

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What's AGI?

Your adjusted gross income is the number at the bottom on page 1 of your 1040. Specifically, it's your gross income minus so-called above-the-line deductions. These include deductible IRA contributions (as well as deductible SEP, SIMPLE and Keogh contributions for self-employed folks), the student-loan-interest deduction, deductible contributions to health savings accounts, moving-expense deductions, half of the self-employment tax paid by self-employed individuals, the deduction for health-insurance premiums paid by self-employed persons, the deduction for higher-education tuition and fees; the deduction for certain legal expenses; the deduction for penalties on the early withdrawal of savings, the $250 deduction for teachers, and the deduction for alimony payments. AGI is not reduced by the standard deduction or itemized deductions. However, the key for calculating your eligibility for education savings accounts is actually modified AGI, or MAGI. This is your AGI (as explained), increased by certain foreign earned income and housing costs for those living abroad as well as certain offshore income, all of which is excluded from taxation.

What Are UGMAs/UTMAs?

These are custodial accounts for kids that can be set up under applicable state law. The custodian (generally the parent) maintains control over account until beneficiary reaches the age of majority, although the account is taxed at the beneficiary's rate (assuming the kiddie tax doesn't apply). There is not much difference between an UTMA (Uniform Transfers to Minor Act) account and an UGMA (Uniform Gifts to Minor Act) account, although UGMAs have stricter rules as to what can be held in the account. A handful of states mandate UGMAs, while most mandate UTMAs.

What's a Crummey Trust?

A Crummey Trust is a trust set up for a minor, often to hold funds intended for the child's future higher education costs. The beneficiary is doled out money according to the terms of the trust document. These trusts allow you to have longer control over the account than with an UTMA or UGMA, although they're costly to set up. Be prepared to spend at least $1,000.

Next: The College Tax Breaks Superpage