• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Coverdell accounts: Not gone, but forgotten?

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Q. I never hear about Coverdell IRAs anymore. Have they been repealed? L.P.S., Orlando, Fla.

A. No. You can still use a Coverdell Education Savings Account (CESA), sometimes called the “Education IRA,” as a tax-deferred way to save for school. Dis­­tri­­bu­­tions are tax-free if they are used to pay for qualified education expenses. But the relatively low annual contribution limit of $2,000 has discouraged many parents of college-bound children. There are other options, like Section 529 plans, that generally allow you to accumulate more for college.  

Tip: This isn’t just for higher education. A CESA may also be used for pay for qualified K-12 education expenses.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/35908/coverdell-accounts-not-gone-but-forgotten "

Leave a Comment