Chapter 4: Gross Income from Personal and Investment Activities

01.Core Concepts

Coverdell Education Savings Accounts • $2,000 maximum per year until beneficiary reaches age 18 • Distributions are tax free if used to cover educational expenses, including. • Qualified elementary/secondary school expenses • Special needs expenses • Contributions to 529 plans • Account must be used or rolled over by the time the beneficiary reaches age 30.