Series 7: 16.6.2.1 Coverdell Education Savings Accounts

Taken from our Series 7 Top-off Online Guide

16.6.2.1 Coverdell Education Savings Accounts

The Coverdell Education Savings Account (CESA or Coverdell ESA) was previously known as the Education IRA. The Coverdell ESA is similar to a 529 college savings plan in that contributions are made with cash in after-tax dollars and all withdrawals can be made tax-free as long as they are used for qualified educational expenses.

Otherwise, though, the Coverdell is much different. First, annual contributions are limited to $2,000 for all Coverde

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