The Coverdell Education Savings Account – Is it Right For You?
Most parents are dealing with daily battles from getting homework into backpacks to packing a healthy lunch, still long term concerns like saving for college tuition and fees are lingering too. College tuitions and fees continue to rise even as the economy is in a downturn. So what are your college savings options? Are Coverdell Education Savings Accounts a good option? They certainly can be. It simply depends. The 411 on Coverdell Savings Accounts Coverdell Education Savings Accounts, formerly known as the Education IRA, was created in 2002 and named after the late U.S. Senator Paul Coverdell. It was designed to help parents achieve higher education savings. The highlights of a Coverdell Education Savings Account: Contributions are not tax deductible but are withdrawn tax-free when used for education. Offers a tax shelter for education savings. There is no tax owed on the capital gains provided it is used for education regardless of how large the fund grows. Like 529 college savings p
