Coverdell Education Savings Accounts

Tax and Money Tip of the Week: 
Coverdell Education Savings Accounts
April 6, 2011 | No. 37 

If you meet designated income limits, you can contribute $2,000 annually to a Coverdell Education Savings Account.  Although contributions are not deductible, all earnings and withdrawals are tax-free, providing that you use the money for qualified education expenses, including those for kindergarten through high school.  In addition, you can fund your Coverdell Account with a wide variety of investments.

Along side a 529 College Savings plan, a Coverdell Account can play a big part in your college funding strategy.  Safety of principal and consistency of return are key considerations.  It’s also important to have an easy to manage program that keeps your money working all the time.

How much you invest depends on your resources and resolve.  By starting early and diversifying properly, you can achieve your goals.

If you should have any questions, please don’t hesitate to give us a call.

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

Advertisements
This entry was posted in Tax and Money Tip of the Week and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s