The recent Tax Relief Act will produce many changes to IRAs, beginning in 2002. Please review our summary of the changes or work with a financial advisor near you to understand the implications. Coverdell Education Savings Account Brief Description Formerly called the Education IRA, this account helps families pay for the college educations of their children. Money accumulated in this account can be withdrawn to pay eligible educational expenses tax-free, which include tuition, books, supplies and room and board. A Good Idea for People who are looking to save for future education expenses, whether for themselves or for a child.
Any growth is tax-free.
If you are paying eligible educational expenses, you can take tax-free withdrawals of earnings. The Downside Withdrawals are limited to paying eligible educational expenses. Accounts must be closed when the child turns 30. If the child decides not to go to college, you can roll the account to another child to pay for college expenses. Near You View Corporate Entities and Important Disclosures , Web Site Rules and Regulations , Trademarks and Privacy Statement .