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Return to IRAs
Who Can Contribute: Anyone who has a modified adjusted gross income of:
- Single filer: Up to $95,000
- Joint income for filers: up to $190,000
- Some people with higher modified adjusted gross income may be able to make smaller contributions
- Contributions aren't allowed after the beneficiary reaches age 18 (contributions after age 18 allowed for special needs beneficiaries)
Contribution Limits:
- $2,000 per child, per year
- Limit applies to all Coverdell Education Savings Accounts for the same child.
Tax-Deductible Contributions: Contributions are not tax-deductible.
Coverdell Education Savings Account Tax Advantages: Withdrawals for certain qualified education expenses are tax-free.
- Special-needs beneficiaries can withdraw funds tax-free to pay for qualified education expenses at any age
- Qualified education expenses may include tuition, fees, books, computer equipment and technology required for elementary, secondary and post-secondary education
- A beneficiary may receive tax-free distributions from a Coverdell Education Savings Account in the same year he or she claims the Lifetime Learning or HOPE Scholarship tax credits
Withdraw Funds Without Restrictions/Penalties Under the Following Conditions:
- Withdrawals are tax- and penalty-free only for qualified education expenses (earnings are subject to tax and penalty for most other withdrawals).
- Funds can be transferred from one child's account to an account for another child in the family.
Application & Forms
Print the form, fill it out, and send it to the Retirement Center address (bottom of the page, under Contact the Retirement Center). All forms require Acrobat Reader [external link disclosure].
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