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The Coverdell Education Savings Account empowers you to plan for your children’s education and future. You can invest in a wide variety of securities, such as stocks, bonds, options, and mutual funds. Earnings and distributions from an Education Savings Account are tax and penalty free, provided the funds are used for qualified elementary, secondary, or higher education expenses and the withdrawal does not exceed the child’s education expenses for that year.
Account Features
- Contributions are made on an after-tax basis
- The contribution deadline is April 15th of the following calendar year
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- The maximum contribution is $2000 per year until the child’s 18th birthday (subject to restrictions)
- Friends, family and the child for whom the account is being established can all contribute to an Education Savings Account
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Additional Specifications & Fees
- In addition to qualified higher education costs, such as tuition, fees, books, supplies, and equipment, eligible expenses include qualified elementary and secondary education costs, including tuition, tutoring, books, supplies, uniforms, transportation, and even computer equipment (subject to certain limitations).
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