The Coverdell Education Savings Account was created as a way to save for a child’s educational expenses. The account provides a way for distributions of interest earnings to be potentially tax-free if used to pay for qualified education expenses needed. It can be used for a child enrolled in an elementary, secondary and college education program.
Contribution Eligibility and Amount
There is no requirement that an individual funding a Coverdell Education Savings Account have earned income, as is required for Traditional and Roth contributions. Contributions are not tax-deductible and may not be made to a Coverdell Education Savings Account if the contributor's income is above certain levels.
Coverdell Education Savings Account Single Filers Allowable Contribution Amount:
