Coverdell Helps You Save for Education

“Tax Break That Helps Private School Parents Is Made Permanent” by Ann Carrns in the NYTimes is a helpful article. It states in part:

“The Coverdell lets you deposit up to $2,000 each year in an investment account. The contributions are not tax deductible, but you do not pay taxes on the earnings you take out, as long as you use them for tuition or other qualified expenses — including those for elementary or secondary education at independent and religious schools, as well as college tuition.”