Coverdell Education Savings Account: College with Tax Advantages

The Coverdell Education Savings Accounts, once known as Education IRAs, can help taxpayers save for a child’s education. Contributions to a Coverdell ESA are nondeductible, but the earnings on the account grow tax deferred and distributions are treated as a tax-free gift to the beneficiary. The contributor does not have to be related to the beneficiary.

By |2020-04-12T23:32:40+00:00June 7th, 2012|Taxes|