Coverdells and Education Savings Accounts
Are tax-exempt accounts for the qualified education expenses of a designated beneficiary to pay for education expenses.
529 College Plans
Established and maintained by the states and allow individuals to set up plans to pay for a student's qualified higher education expenses with tax-free withdrawals.
College Savings 529 Plans
A college savings plan that allows anyone to contribute to an account that will be used to pay for a beneficiary's qualified higher education expenses.
Prepaid Tuition 529 College Plans
Allows anyone to establish an account in the name of a beneficiary where he can "lock in" the cost of a specific number of academic periods or units at current prices for use in the future by the beneficiary.
Coverdell - Education Savings Accounts Contribution Limit
Contribution must be in cash, is limited to $2,000 per year per beneficiary, and is not tax deductible. Eligibility is phased out for taxpayers with certain levels of modified AGI. The program is most suitable for low and middle income taxpayers.
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