Seeing a child work toward a college degree is a parent's dream. But with rapidly escalating costs of higher education, this dream can become a financial nightmare. A Coverdell Educational Savings Account (ESA) can help parents sleep at night.
The main benefits of a Coverdell ESA include:
Unlike state 529 plans, Coverdell ESA's can be use to pay for qualified elementary and secondary education expenses
Earnings grow tax-free if distributions are used for qualified education expenses