With a Coverdell Education Savings Account (ESA), you may save up to $2,000 per child per year. Contributions are made with after-tax dollars while earnings and withdrawals are tax-free. The account offers versatility, but funds must be used for qualified educational expenses to receive the tax-free benefits.
Benefits of a Coverdell ESA:
- Tax-free earnings and withdrawals used for qualified educational expenses
- Family members may contribute, up to the annual limit
- Transfer funds from one account to another within the same family
- Continue saving each year until the child reaches 18
- Enjoy a flexible use of funds
A Coverdell ESA is versatile and can be used for a broad range of educational needs. Funds can be applied to college, university, and public or private K-12 education expenses including tuition, tutoring, room and board, and even computer or other technology needs.
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IRA Accumulation (Traditional,Roth,Education)
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