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Questions tagged [coverdell-esa]

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Can and should we use all of our 529 and ESA money in one school year?

When our child was a preschooler my wife and I set up 529 and ESA funds. However, that was limited because the public schools in our area are badly overcrowded, somewhat dangerous, and do not provide ...
GreenMatt's user avatar
  • 434
2 votes
1 answer
59 views

Coverdell ESA income limits - whose income matters?

My children are fortunate enough to be gifted money each year by their grandparents for their birthdays. The grandparents want the money placed in each child's Coverdell ESA, but they give the money ...
aggieTaxes's user avatar
4 votes
0 answers
196 views

How should we close Coverdell accounts with minimal penalties?

I have 2 kids that I had coverdell accounts for. We never used them for school expenses because we thought they could be used to pay off loans which I now know we can't. Both of my kids are now over ...
debbie Brennan's user avatar
1 vote
0 answers
27 views

Is there a personal tax liability on corporate ESA contributions?

According to the IRS publication on Coverdell ESA, https://www.irs.gov/taxtopics/tc310: You may be able to contribute to a Coverdell ESA to finance the beneficiary's qualified education expenses. ...
Steve Rathers's user avatar
2 votes
1 answer
74 views

Corporate Coverdell ESA Tax Liability

Say John has three kids, Alice, Bob, and Carl, and sets up an ESA for each child. Also, John's income is too high to contribute to the ESA himself. Can he have a non-deductible corporate contribution ...
Jacub Fiona's user avatar
2 votes
1 answer
499 views

Entire Coverdell ESA accidentally disbursed, need to spend part and redeposit

My 18 year old daughter will be entering a university and community college simultaneously. I had a Coverdell ESA that I wanted to use for tuition, room & board, and a computer for her. I went to ...
Ryan's user avatar
  • 121
1 vote
2 answers
431 views

What is the penalty of contributing to a Coverdell ESA while earning over $110k MAGI?

Regarding Coverdell Education Savings Account (ESA) (https://www.irs.gov) Q. Who can contribute to a Coverdell ESA? A. Generally, any individual (including the beneficiary) whose modified ...
nipponese's user avatar
  • 209
1 vote
0 answers
80 views

Coverdell ESA Tax Consequence For Corporate Contribution

I have a small business (C corp) and noticed that corporations can contribute to an Coverdell ESA account with no income limit. Can I create an ESA account for a child and fund it 100% from corporate ...
John Stanley's user avatar
7 votes
2 answers
2k views

529 Plans vs Coverdell ESA

I was recently introduced to ESAs (did not know they even existed), and am trying to decide if I want to open an ESA or a 529 account. I was attracted to the ESA initially because it looks like you ...
Dr. Watson's user avatar
5 votes
1 answer
1k views

Can my sister open a Coverdell ESA for my son?

My son is, naturally, claimed as a dependent on my tax returns. My question is: Can my sister open a Coverdell Education Savings Account (an education IRA) for my son (her nephew)? I am aware that ...
rs79's user avatar
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5 votes
1 answer
6k views

Can I convert my 529 college savings plan to a Coverdell ESA?

Can I convert my 529 college savings plan to a Coverdell ESA, or am I stuck with my 529 plan?
zundarz's user avatar
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9 votes
4 answers
1k views

How should I save for college if I have 10 years and a lump sum of money?

I have roughly 10 years until my kids go to college. How should I save for them if I have a lump sum of money (say $10K for discussion). I ask because I've heard good things about an ESA (I think ...
Alex B's user avatar
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5 votes
2 answers
2k views

Does a child own an Education IRA (Coverdell Education Savings Account) upon turning 18?

If I am custodian for an Education IRA (Coverdell Education Savings Account). What happens when the child turns 18 (age of majority)? Do they get control or does it remain with the custodian? My ...
WilliamKF's user avatar
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