How Do You Contribute To A Coverdell Education Savings Account?
The Coverdell Education Savings Account (ESA) was formerly known as the Education IRA. It is much like a traditional IRA, in terms of contributions and the rules that govern it. However, a Coverdell ESA is designed to be used for educational expenses. When you contribute at the maximum allowable rate, a Coverdell ESA can be a valuable asset for a child’s future educational needs. Note your modified adjusted gross income by reviewing your most recent federal tax return. This amount will help you determine whether or not you are eligible to contribute full or partial contributions to a Coverdell ESA. Typically, under federal rules, a single-income family earning under $100,000 is allowed make the full yearly contribution, while a two-income family needs to earn under $200,000. Utilize the short-term advantages of a Coverdell Education Savings Account. This account differs from others of its type in that the funds need not be withdrawn solely for the purpose of postsecondary education. Th
