Saving for Private School Tuition: Coverdell ESA’s made permanent

Coverdell: Saving for Private School

Coverdell Education Savings Accounts: Saving for Private School Tuition

A quick note this morning on the status of Coverdell Education Savings Accounts:

Coverdell ESA’s were made permanent in the recent fiscal cliff legislation. With tax time upon us, a Coverdell ESA might be a good fit for private school savings plan.

Coverdell ESA’s have a maximum contribution limit of $2000 annually so families won’t be able use a Coverdell ESA for the bulk of their tuition savings. But, every little bit helps.

A few- but not all- Coverdell ESA Basics:

  • Coverdell ESA savings can be used to pay for K-12 private expenses and higher education expenses.
  • Coverdell ESA eligibility phases out at $110,000 (single filer) and $220,000 (joint filer)
  • Families can contribute to both 529 plans and the Coverdell ESA for the same beneficiary.

Remember to check with your accountant/tax advisor as you consider your education savings choices.

Photo credit: 401(K) 2013 via Creative Commons

Brian Fisher

A product of both private and public education, Brian Fisher served as a teacher, coach, dorm parent, and administrator at three different boarding schools. Brian also fills the role of Director of Development at Wolfeboro, The Summer Boarding School, in NH along with being a partner at AdmissionsQuest.

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