Education Savings Accounts
Updated: January 7, 2009
With college costs rising, many parents and grandparents look for ways to put money away.
Coverdell Education Savings Accounts may help.
As shared by Donna Greene of First Busey Securities (member NASD/SIPC) on "The Morning Show."
COVERDELL EDUCATION SAVINGS ACCOUNTS
+Annual contribution limit is $2000. per child
+Can be used for elementary, secondary schools and college
COVERDELL ESA LIMITS
+Income limits for maximum contribution:
-Single: adjusted gross income below $95,000.
-Married: adjusted gross income below $190,000.
COVERDELL ESA TAX BENEFITS
+No current tax deduction
+Grows tax-deferred
+Withdrawls are tax free if used for qualified education expenses
COVERDELL ESA ADDITIONAL INFORMATION
+www.savingforcollege.com
+IRS publication 970: Tax Benefits for Education
26 FEBRUARY 2004
