Tax and Money Tip this Week:
Coverdell Education Savings Accounts
March 8, 2017 | No. 327

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

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