Q.What is the Coverdell Education Savings Accounts (Education IRAs)?

A.Unlike the UTMA custodial account and the 529 Savings Plan, Coverdell ESAs can be used to pay for any level of accredited education, even kindergarten. However, the maximum annual contribution for such an account is $2,000 and the ability to make contributions phases out for individuals at certain levels of adjusted gross income.

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