The Coverdell ESA is a savings plan created for the purpose of paying a student’s qualified educational expenses. These can include, but are not limited to:
Similar to a 529 plan, your money is tax-deferred, allowing your fund to grow faster.
Contributions to a Coverdell ESA are not tax-deductible. In addition, contributions are allowed for individuals under the age of 18.
Distributions from a Coverdell ESA may be tax-free, but they must be used to pay for qualified educational expenses.
With a Coverdell ESA account, you can invest in a wide variety of products including stocks, bonds, and mutual funds.
The maximum contribution per year is $2,000.
Account Minimums:
$2,000 maximum per designated beneficiary
