When must assets in Coverdell Education Savings Account (ESA) be distributed?
Per the IRS, any assets remaining in a Coverdell ESA must be distributed when either one of the following two events occurs as shown below.
1. The designated beneficiary reaches age 30.
In this case, the remaining assets must be distributed within 30 days after the beneficiary reaches age 30. However,this rule does not apply if the beneficiary is a special needs beneficiary.
2. The designated beneficiary dies before reaching age 30. In this case, the remaining assets must generally be distributed within 30 days
after the date of death.