Basic Information

Q: What is a Coverdell Education Savings Account (ESA)?

A: Coverdell ESA is a trust or custodial account that provides individuals a tax-advantaged method to save up to $2,000 per year for a child's education (both elementary/secondary education [kindergarten through grade 12] and post-secondary education [college, graduate school, vocational school, etc.]) and may be established for the benefit of any child under age 18.

Q: When may an individual start contributing to a Coverdell ESA?

A: Contributions to a Coverdell ESA can be made any time after the birth of a child and may continue until the child's 18th birthday. Contributions will not be accepted after the child reaches his or her 18th birthday, unless the child is a special needs beneficiary (as defined by Treasury Department regulations).

Q: How many Coverdell ESAs may a child have?

A: There is no limit on the number of Coverdell ESAs that may be established designating a particular child as beneficiary. However, in any given taxable year the total aggregate contributions to all accounts designating a particular child as beneficiary may not exceed $2,000.