Formerly known as the Education IRA, the Coverdell Education Savings Account (ESA) is a type of tax -advantaged savings account used specifically for paying qualified higher education expenses.

Contribution Information

• 2007 Limits: Up to $2,000 per child, per year when the child is under the age of 18.
• 2008 Limits: Up to $2,000 per child, per year when the child is under the age of 18.

Tax Information

Contributions are not tax-deductible; however, when the funds are used for the child's qualified education expenses, you do not have to pay taxes on dividend earnings.

IRA information not intended as tax advice.  Please consult a tax professional.