Use a Coverdell ESA to help pay college, elementary and secondary school costs

Use a Coverdell ESA to help pay college, elementary and secondary school costsThere are several ways to save for your child’s or grandchild’s education, including with a Coverdell Education Savings Account (ESA). Although for federal tax purposes there’s no upfront deduction for contributions made to an ESA, the earnings on the contributions grow tax-free. In addition, no tax is due when the funds in the account are distributed, to the extent the amounts withdrawn don’t exceed the child’s qualified education expenses.

Want to save for education? Make 2016 ESA contributions by December 31

12_20_16_515705750_ITB_560x292.jpgThere are many ways to save for a child’s or grandchild’s education. But one has annual contribution limits, and if you don’t make a 2016 contribution by December 31, the opportunity will be lost forever. We’re talking about Coverdell Education Savings Accounts (ESAs).