Can I contribute to a 529 savings plan, a Coverdell Education Savings Account and a College Illinois! Prepaid Tuition Program plan at the same time?
Contributions can be made to a College Illinois! Prepaid Tuition Program plan, a 529 savings plan, and a Coverdell Education Savings Account in the same taxable year for the same beneficiary. Federal law allows the contribution of $2,000 per year per child to a Coverdell Education Savings Account. For those contributing to several 529s, it is important to limit total contributions in all plans to the maximum amount that will be required for the beneficiarys total higher education expenses. If more funds are held in 529 plans than can be withdrawn at a later date for qualified higher education expenses, there will likely be tax penalties. *Please see the Master Agreement and Disclosure Statement for details regarding tax advantages and implications. The College Illinois! Prepaid Tuition Program cannot provide purchasers with any legal or tax advice. Purchaser should consult their own tax advisor concerning federal and state tax implications of purchasing a contract.
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