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The IRS created the Coverdell Education Savings Account (ESA) to encourage and incent parents and students to save for education expenses. The total contributions for an ESA beneficiary cannot be more than $2,0001 in any year, no matter how many accounts have been established. A beneficiary is someone who is younger than age 18 or has special needs. Contributions can be made until the 18th birthday of the child.
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1 There are contribution limits for taxpayers based on the contributor’s Modified Adjusted Gross Income.
2 Subject to minimal conditions. Check with your tax advisor.
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