Coverdell Education Savings Account

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Coverdell Education Savings Account

An account into which one may deposit funds on a tax-deferred basis, on the assumption that they will be used to pay for the education of the account holder. The funds are invested in a portfolio, much like an IRA or another retirement account. If the funds are in fact used for education, withdrawals from a Coverdell account are tax-exempt up to the total cost of education. Importantly, any tax liability on a Coverdell account is assessed at the account holder's bracket, rather than the contributor's. This protects the account holder from an excessive tax liability in the event a wealthy parent made most or all of the contributions. It was formerly called an education IRA.

Coverdell Education Savings Account

A special individual retirement account opened on behalf of a child under age 18. Contributions of up to $2,000 annually may be made by anyone who meets specified income limits. Contributions are not tax-deductible, but earnings grow tax-deferred until withdrawn. Money withdrawn prior to the child turning age 30 to pay for elementary, secondary, or postsecondary education expenses after high school is not subject to federal income tax. Formerly called Education IRA.

Coverdell Education Savings Account (ESA)

A tax-favored savings plan under which any number of taxpayers may contribute up to a total of $2,000 per year per eligible beneficiary. Contributions are nondeductible. Earnings withdrawals are tax free and penalty free if they do not exceed the amount of qualified education expenses for the year.
References in classic literature ?
Venus had risen above the branch, and the ear of the Great Bear with its shaft was now all plainly visible against the dark blue sky, yet still he waited.
One May morning, when the sun was rising on one of those dark blue skies against which Garofolo loves to place his Descents from the Cross, the recluse of the Tour-Roland heard a sound of wheels, of horses and irons in the Place de Grève.
The suggestion of this headdress, which gave her what was then called a "Josephine look," was carried out in the cut of the dark blue velvet gown rather theatrically caught up under her bosom by a girdle with a large old-fashioned clasp.
The dark blue dress, fitting without a wrinkle, the hat with its jaunty black feather, the but-slightly-soiled gloves--all representing self- denial, even of food itself--were vastly becoming.
Childe Harold not unfrequently perches himself upon the mast-head of some luckless disappointed whale-ship, and in moody phrase ejaculates: -- Roll on, thou deep and dark blue ocean, roll
From this lofty eminence, a vast and magnificent prospect unfolds itself; the great Gulf of California, with the dark blue sea beyond, studded with islands; and in another direction, the immense lava plain of San Gabriel.
There were cultivated fields between the grove and the dark blue gulf; but far behind and on each side were woods, for Prince Edward Island a hundred years ago was not what it is today.
Then sometimes the immense quiet of the dark blue at night with millions of stars waiting and watching makes one sure; and sometimes a sound of far-off music makes it true; and sometimes a look in some one's eyes.
Also, they presented her a pair of shoulder-straps - both dark blue, the one with F.
The beast was dark blue in color and his face was not fierce nor ferocious in expression, but rather good-humored and droll.
The moon was full and broad in the dark blue starless sky, and the broken ground of the heath looked wild enough in the mysterious light to be hundreds of miles away from the great city that lay beneath it.
When she was a child,' he said, lifting up his head soon after we were left alone, 'she used to talk to me a deal about the sea, and about them coasts where the sea got to be dark blue, and to lay a-shining and a-shining in the sun.