Series 51: Coverdell Education Savings Accounts

Coverdell Education Savings Accounts

The Coverdell Education Savings Account (CESA) is similar to a 529 college savings plan in that contributions are made with after-tax dollars and all withdrawals can be made tax-free, but with the CESA, this only applies as long as the funds are used for qualified educational expenses before the age of 30. Withdrawals can be used to finance any level of education from the primary and secondary levels through college. Initially, the beneficiary must be under the age of 18 or may be an older individual with special needs. Once a CESA is established, however, funds can be used by the beneficiary