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Coverdell Education Savings Accounts - Tax Break Nears End

Saturday, July 28, 2012 - 8:44 AM
From the New York Times
The Coverdell lets people put away up to $2,000 each year in an investment account. While the contributions are not tax-deductible, you don’t pay any 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.
[...]
As with a lot of things in the tax code, the Coverdell tax break for elementary and secondary tuition costs is scheduled to expire on Dec. 31, absent some legislative action in Washington.

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Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Saturday, July 28, 2012 - 9:35 AM
I'm glad you posted this because this Coverdell thing has always confused me.  Certain credit unions I have been interested in call all their CDs Coverdell CDs and when I call them and ask them what that is was told "just a name they go by".  They say it does not have to be used for education and is just like an ordinary CD.  From what was posted above, it seems it can have a special purpose for people who are looking for education CDs.  I think it is ridiculous that the CSRs at some institutions have no idea what their products are all about.  When the tax break expires, if it does, I wonder if the cus will still use the name Coverdell for their CDs.  Anyway, thanks for the additional info on it, Ken.
1
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
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