A Coverdell ESA is a trust or custodial account created or organized in the United States only for the purpose of paying the qualified education expenses of the designated beneficiary of the account.
A deposit or investment account that provides tax benefits to help accumulate funds for education.
This IRA allows a related taxpayer to deposit up to $2000 per year for each child under the age of 18. Interest earned on this type of IRA will be tax-free. In addition, withdrawals from a Coverdell Education Savings IRA will be tax-free as long as the withdrawals are used for qualified educational expenses. Any individual can contribute to a Coverdell ESA if the individual’s Modified Adjusted Gross Income (MAGI) for the year is less than $110,000. For individuals filing joint returns that amount is $220,000. Above the maximum income level, the allowed contribution is zero.
This account named after Senator Paul Coverdell (GA) replaces the Education IRA. It allows parents to make a contribution into the account with an annual limit. The contributions are taxed but the earnings used to pay education expenses are not. There are Internal Revenue rules and guidelines that apply to this account.
A Coverdell education savings account, formerly called an education IRA, is a tax-advantaged account that allows you to make after-tax contributions to pay for college tuition and qualified educational expenses. In 2004, you can contribute up to $2,000 a year to pay for educational expenses, including those for primary and secondary schools. Withdrawals are tax-exempt up to the amount of qualified expenses. The amount you can contribute to a Coverdell ESA is phased out at higher incomes. For single persons, the phase-out begins when modified adjusted gross income reaches $95,000. Allowable contributions phase out at $110,000. For married persons filing a joint return, the phase-out limits are exactly twice as much in 2004.
An education savings plan that allows a person to put aside up to $2,000 each year for the college expenses of a specific beneficiary. Contributions are not tax deductible, but any earnings are tax free.
A tax-favored savings vehicle designed for those saving for a child's post-secondary school education.
Formerly called an Education IRA. With the name change in 2002, came an increase in contribution limits ($2,000 a year vs. $500 for the Education IRA). And while you could only save for college expenses prior to 2002, now you can use this account to save for K-12 expenses too. Unlike other IRAs, however, you can only invest cash in the Coverdell Education Savings Account.
An account that allows money to be saved today and to grow tax-free if used for education. An ESA has greater contribution and income restrictions than a 529 Savings Plan but money may be used for private primary and secondary schools.
A trust or custodial account created or organized in the United States for the sole purpose of paying the qualified education expenses of the designated beneficiary of the account (formerly called Education IRA). Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax-free until withdrawn. If, for a year, withdrawals from an account are not more than a designated beneficiary's qualified education expenses at an eligible educational institution, the beneficiary will not be taxed on the withdrawals.
Formerly known as the Education IRA, this federal income tax provision enables taxpayers to establish a college savings plan. A maximum of $2,000 may be contributed annually, according to income eligibility guidelines. Credit hour. A unit of measure representing an hour (50 minutes) of instruction over a 15-week period in a semester or trimester system, or a 10-week period in a quarter system. It is applied toward the total number of hours needed for completing the requirements of a degree, diploma, certificate, or other formal award.
The Coverdell Educational Savings Account (ESA), formerly the Education IRA, is not really an IRA at all. It was created as part of the Taxpayer Relief Act of 1997 to help families save for their children's college. Distributions from the IRA are tax-free and penalty-free for "qualified higher education expenses", allowing annual aggregate contributions of $2,000 per child. The minimum balance on this account is $1.00.
Formerly known as Education IRA, it is a type of individual retirement account enabling the contribution of up to $500 per year in 2001 for each child up to the age of 18 by the parents in the family. This level will increase to $2,000 a year beginning in 2002.
The Coverdell ESA is a tax-deferred savings and investment account for education expenses. (It was formerly called the Education IRA.) Parents can contribute $500 a year for each child or grandchild under age 18. Contributions aren't tax-deductible, but withdrawals are tax-free. The money must be used for college or graduate school tuition, room, board, or books before the student turns 30. At that point, the funds will be distributed to the beneficiary and will be subject to a 10% penalty and income taxes. Before then, however, the funds can be transferred to a new Coverdell ESA for another family member.
This type of account, formerly known as an Education IRA, is a tax-advantaged trust or custodial account set up to pay for qualified education expenses.
A donor can put up to $2,000 in a Coverdell Education Savings Account per year, per beneficiary. The maximum contribution amount is gradually reduced as certain income thresholds are reached. Taxpayers with adjusted gross incomes from $190,000 to $220,000 (joint returns) or $95,000 to $110,000 (other returns) cannot fully fund a Coverdell account. At and over the upper income range, they cannot use this vehicle at all. .
A tax exempt trust exclusively for the purpose of paying qualified higher education costs of the trusts designated beneficiary.
An investment vehicle designed to help parents or others fund a child's education. Contributions to the account are not tax deductible, but earnings used to pay qualified education expenses are not taxable. Generally, the account is transferable among family members. However, there are several restrictions attached to this account. The entire account has to be disbursed by the beneficiary's 30th birthday and any withdrawals after this date or for expenses that are not qualified education expenses will be subject to federal income taxes and a tax penalty.
A tax-deferred account that provides tax-free withdrawals to cover educational expenses. Formerly called an Education IRA.
Originally known as the education IRA, even though it has nothing to do with retirement. A Coverdell ESA allows you to put up to $2,000 a year in a special account that will be used to pay a student's school bills. There's no deduction for contributions but if the money is used to pay qualifying expenses, withdrawals are tax free. The $2,000 cap is the limit on how much can be set aside for any student in one year, regardless of how many people contribute. Prior to 2002, only college bills or the cost of other post-secondary education could qualify for tax-free disbursements. Now, primary and high school bills count, too—even the cost of a computer can qualify.
A Coverdell Education Savings Account (also known as an Education Savings Account, a Coverdell ESA, a Coverdell Account, or just an ESA and formerly known as an Education IRA), is a tax-advantaged investment account in the United States designed to encourage savings to cover future college education expenses. It is found at section 530 of the Internal Revenue Code .