Previously referred to as an Educational IRA
A Coverdell Education Savings account provides a tax-favored method of saving for the cost of elementary, secondary, and post secondary education costs. The interest that is earned in a Coverdell Education Savings account is not subject to federal income tax until distribution. It then depends on the reason for distribution. Contributions can be made until the designated beneficiary turns 18, unless the beneficiary is a person with special needs, and the beneficiary must utilize the assets before he/she turns 30 years of age.
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