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Coverdell Education Savings Account Made Permanent By Fiscal Cliff Deal

Sunday, January 6, 2013 - 5:39 AM
Here's one small positive outcome from the Fiscal Cliff Deal. According to the New York Times Bucks blog:
The fiscal legislation just passed by Congress, known as the American Taxpayer Relief Act of 2012, makes permanent a little-known tax break for people who send their children to private or religious schools for kindergarten through 12th grade.

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Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Sunday, January 6, 2013 - 8:19 AM
Well, it goes to show that if we wait long enough all of our questions are answered on DepositsOnline.  One of the institutions I check for rates has something called that Coverdell Savings CD and when I contacted their rep about what it was and could anyone buy it I was told it was just the name they called their CDs and it was like regular CDs for anyone to purchase.  At the time their rate was not better than others I had seen so I didn't do business with them.  They really need to train their reps to explain what the Coverdell CD actually is.  We don't get tax breaks for other regular CDs. 

The above post stating it was a "little-known tax break" hit the nail on the head.  So little known even the people who sell the CDs don't seem to understand it.  (At least the one I spoke to).
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,152