Get Covered with the Coverdale Education Savings Account
Friday, June 20th, 2008The Coverdale Education Savings Account is one for your parents. So show them this blog. You’ll look like you are interested in college financial aid options, when really you’re really all about hitting your parents up for college cash.
The Coverdale Education Savings Account, aka Educational Savings account, a Coverdell ESA, a Coverdell account or just ESA is a tax-advantaged investment account to save and cover future college education costs. They are very similar to the 529 savings plans in that they are tax-deferred and are withdrawn tax-free for qualified educational expenses. But the Coverdell Education Savings Account can also cover primary and secondary schools as well as colleges and universities.
The Coverdale Education Savings Account allows your parents to contribute up to $2,000 per person each year and deduct the contribution from their taxes. Accounts can be established with most brokers and mutual fund companies. These contributions may be used for primary and secondary education expenses. You can make contributions to a 529 plan and a Coverdale Plan, but there is a potential gift-tax consequence if you contribute a total exceeding $11,000 per person.
