Coverdell Education Savings Account

Contributions to the Coverdell ESA are not tax deductible, but amounts deposited in the account grow tax free until withdrawn.

Generally withdrawals are free if they are used to educational purposes and are not more than the beneficiary’s qualified education expenses for the tax year.

You can make contributions to a Coverdell ESA and a Qualified Tuition Program (QTP) in the same year for the same beneficiary.

The designated beneficiary can be changed to a member of the beneficiary’s family without tax consequences, if at the time of the change, the new beneficiary is under the age of 30.

Generally when the account is established, the designated beneficiary must be under age 18, but can be 18 or older if he or she is a special needs beneficiary.