Definitions for "Coverdell Education Savings Account"
Keywords:  esa, ira, formerly, taxpayer, tuition
ESA. An investment vehicle designed to help parents fund their childs education....
An education savings account that allows parents, grandparents and others to contribute cumulatively up to $2,000 a year, starting in 2002, for the education expenses of a child.  Contributions are not tax-deductible, but withdrawals are tax-free if used for qualified expenses such as tuition and room and board.
a trust or custodial account in which contributions are not tax-deductible but earnings can grow federal income tax-free if distributions are used for certain elementary, secondary, or post-secondary educational expenses