- The maximum annual contribution is $2,000 per student.
- You can only make contributions for students until they turn 18.
- To be eligible to contribute the $2,000 maximum, your modified adjusted gross income must be below $95,000 if filing single, or $190,000 if filing a joint tax return.
- To get around the income limits, the student or retired grandparents can make the contributions instead of the parents.
- Note: contributions are made with after-tax dollars. Earnings aren’t taxed, nor are withdrawals if the money is spent on education.
Have questions about a Coverdell Educational Savings Account or want to set up an investment to fund your child’s education? Our financial planning experts can help. Contact us today for more information.
To your wealth,
Joseph M. Maas, CFA, CVA, ABAR, CM&AA, CFP®, ChFC, CLU®, MSFS, CCIM
President of Synergetic Finance