Who can contribute?
Anyone who has MAGI:
- Up to $95k for single filers
- Up to $190k for joint filers
- Some people with higher MAGI may be able to make smaller contributions
- Contributions not allowed after the beneficiary reaches age 18 (except for special needs beneficiaries)
How much can I contribute?
- $2k per child each year
- Limit applies to all Coverdell Education Savings Accounts (ESA's) for the same child
Who can make deductible contributions?
- No one can deduct contributions.
What are the tax advantages?
- Withdrawals for certain qualified education expenses are tax-free
- Qualified education expenses include tuition, fees, books, computer equipment and technology required for elementary, secondary and post-secondary education
When can I withdraw without restrictions?
- Withdrawals are tax-free and penalty-free only for qualified education expenses (earnings are subject to tax and penalty for most other withdrawals)
Funds can be transferred from one child's account to an account for another child in the family