What are the advantages of a Coverdell ESA?
An annual limit of $2,000 per year for any individual under age 18 applies. Once the beneficiary reaches age 18 they can take control of the account but funds must be used by the time the beneficiary turns 30 years of age or transferred to a younger sibling.
The ability to contribute to a Coverdell ESA is phased out based on the Modified Adjusted Gross Income (MAGI). The annual contribution deadline is April 15 of the following year.
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