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Why open a Coverdell Education Savings Account (CESA)?

April 26, 2017cesa Coverdell Education savings account

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Why open a Coverdell Education Savings Account (CESA)?

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Although a Coverdell Education Savings Account (CESA) is not a savings vehicle for your retirement, it does allow funds to accumulate and be withdrawn tax-free for the purpose of paying a child’s education expenses. And since contributions are independent of your Traditional IRA or Roth IRA contributions, you can build your retirement savings and the child’s education savings at the same time.