Understanding Coverdell ESAs

In 2002, the Education IRA was renamed the Coverdell Education Savings Account.

These accounts work very much like a 529 plan, offering tax-free investment growth and tax-free withdrawals when the funds are spent on qualified education expenses. However, in addition to college expenses, certain K-12 purchases are also considered qualified when using a Coverdell ESA.

Also, Coverdell ESAs have much lower maximum contribution limits per child, and they are only available to families below a specified income level. Learn more about Coverdell ESAs using the links below.
A thorough explanation of one of the least-understood investment vehicles around, the Coverdell Education Savings Account.

Intro to ESAs
A thorough explanation of one of the least-understood investment vehicles around, the Coverdell Education Savings Account.

Coverdell ESA providers
We have assembled this list of low-cost Coverdell Education Savings Accounts (ESA)

LEARNING CENTER
Read about what benefits Coverdell education savings accounts have to offer and how they compare to 529 college savings plans
Compare the features of a Coverdell education savings account with other college savings options side by side: You can modify your comparison by selecting which options to look at, and what features you'd like to compare
FOR GRANDPARENTS
What issues might you face if you decide to open a Coverdell ESA?

coverdell education savings account calculator
Source: http://docphy.com/business-industry/business/understanding-coverdell-esas.html