WHO CAN CONTRIBUTE?
- Anyone who has MAGI
- Single filer: up to $95,000
- Joint income for filers: up to $190,000
- 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?
- $2,000 per child
- Limit applies to all Coverdell Education Savings Accounts (ESA) 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.
- Special-needs beneficiaries can withdraw funds tax-free to pay for qualified education expensed at any age.
- Qualified education expenses may include tuituion, fees, books, computer equipment and technology required for emementary, secondary, and post-secondary education
- A beneficiary may recieve tax-free distrubutions from a Coverdell ESA in the same year he or she claims the Lifetime Learning or HOPE Scholarship tax credits
CAN I WITHDRAW FROM THE ACCOUNT?
- Withdrawls are tax- and penalty-free withdrawals only for qualified expenses (earnings are subject to tax and penalty for most other withdrawls).
- Funds can be transferred from one child's account to an account for another child in the family