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Old 03-24-2008, 06:14 PM
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What are Coverdell Education Savings Accounts?

I wanted to start a savings account for my kids and was trying to find out a little about the Coverdell Education Savings Accounts. Could you please shed some of the positive features of these accounts and how the earnings are taxed from these accounts? Thanks......



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Old 03-28-2008, 09:03 PM
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What are Coverdell Education Savings Accounts?

What are Coverdell Education Savings Accounts?
A Coverdell Education Savings Account (ESA), formerly known as an Education IRA, is an investment vehicle that assists with saving for education expenses.

What are some of the Features of Coverdell Education Savings Accounts?
1. Investments into a Coverdell Education Savings Accounts will accumulate tax-free for the duration of the investment period. That is, the earnings will grow tax-free.

2.These funds can be used to pay for private schools for young children and high school students.

3. They can even be used for educational expenses for any student, including computers and software.

4. Funds in an ESA can be used to pay for elementary and secondary education expenses, college or university expenses.

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