Series 24: Coverdell Education Savings Account

Coverdell Education Savings Account

The Coverdell Education Savings Account, also called an Education IRA, is similar to a Roth IRA in that contributions are made with after-tax dollars and all withdrawals can be made tax-free, as long as they 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.

If there is a balance in the account when the beneficiary reaches age 30, a distribution must be made within 30 days to main