Comments on: Coverdell Educational Savings Account (ESA) http://cashmoneylife.com/college-savings-plans-coverdell-educational-savings-account-esa/ Money Management, Small Business, Career Wed, 23 May 2012 21:16:10 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Terri http://cashmoneylife.com/college-savings-plans-coverdell-educational-savings-account-esa/#comment-28776 Terri Wed, 12 Jan 2011 01:47:33 +0000 http://cashmoneylife.com/?p=1456#comment-28776 Hi, For tax year 2011, did Congress allow the contribution limit to stay at $2,000 or is it down to $500 for Coverdell ESA's? Thank you Hi,
For tax year 2011, did Congress allow the contribution limit to stay at $2,000 or is it down to $500 for Coverdell ESA’s? Thank you

]]> By: Ryan http://cashmoneylife.com/college-savings-plans-coverdell-educational-savings-account-esa/#comment-26750 Ryan Fri, 03 Dec 2010 02:42:35 +0000 http://cashmoneylife.com/?p=1456#comment-26750 Jack, I don't believe it is possible to do this, however, I recommend speaking with a tax professional to be 100% certain. Based on everything I have read, contributions to a Coverdell account become the property of the person in whose name the contributions are made, and tax free withdrawals can only be made for educational purposes. Again, I recommend speaking with a tax professional for further guidance. Jack, I don’t believe it is possible to do this, however, I recommend speaking with a tax professional to be 100% certain. Based on everything I have read, contributions to a Coverdell account become the property of the person in whose name the contributions are made, and tax free withdrawals can only be made for educational purposes. Again, I recommend speaking with a tax professional for further guidance.

]]> By: Jack Smith http://cashmoneylife.com/college-savings-plans-coverdell-educational-savings-account-esa/#comment-26748 Jack Smith Thu, 02 Dec 2010 19:30:28 +0000 http://cashmoneylife.com/?p=1456#comment-26748 This is such an easy question yet I can't find a simple clear answer to this after two hours on the net. With a NON deductible ROTH IRA, meaning you have paid taxes on the contributions, you CAN withdraw those contributions only, NOT earnings, without any IRS tax penalties. ONLY THE CONTRIBUTIONS! I know for we have done this twice now. Suzie Orman talks a lot about this! My question is can one do the same for a COVERDELL education non deductible IRA well? That is, take out the CONTRIBUTION amount ONLY and USE THAT MONEY for anything? None of the financial companies seem to want to let people KNOW that contributions to a non deductible ROTH IRA, meaning the contribution is ALREADY taxed, and therefore, can be withdrawn for emergency purposes. I just want to know if the CONTRIBUTIONS only can be withdrawn from a Coverdell education account for the same purpose? To be used for anything tax penalty free? Such a simple question and nobody will mention it on these websites! The financial companies don't want people to know they can take that money out! This is such an easy question yet I can’t find a simple clear answer to this after two hours on the net. With a NON deductible ROTH IRA, meaning you have paid taxes on the contributions, you CAN withdraw those contributions only, NOT earnings, without any IRS tax penalties. ONLY THE CONTRIBUTIONS! I know for we have done this twice now. Suzie Orman talks a lot about this!

My question is can one do the same for a COVERDELL education non deductible IRA well? That is, take out the CONTRIBUTION amount ONLY and USE THAT MONEY for anything? None of the financial companies seem to want to let people KNOW that contributions to a non deductible ROTH IRA, meaning the contribution is ALREADY taxed, and therefore, can be withdrawn for emergency purposes. I just want to know if the CONTRIBUTIONS only can be withdrawn from a Coverdell education account for the same purpose? To be used for anything tax penalty free? Such a simple question and nobody will mention it on these websites! The financial companies don’t want people to know they can take that money out!

]]> By: Ryan http://cashmoneylife.com/college-savings-plans-coverdell-educational-savings-account-esa/#comment-26143 Ryan Sat, 23 Oct 2010 06:07:00 +0000 http://cashmoneylife.com/?p=1456#comment-26143 Robert, to be honest, I don't know. I recommend contacting a tax professional regarding this situation. Robert, to be honest, I don’t know. I recommend contacting a tax professional regarding this situation.

]]> By: Robert H. Kille http://cashmoneylife.com/college-savings-plans-coverdell-educational-savings-account-esa/#comment-25737 Robert H. Kille Fri, 24 Sep 2010 21:52:34 +0000 http://cashmoneylife.com/?p=1456#comment-25737 Two children, one 17 and one 12, both with Coverdell ESA's. The 17 year old has dropped out of high school and shows no interest in school (or much of anything else). The 12 year old is a good student. Neither child knows that they have an ESA. Can the older child's ESA be transferred to the younger, without their being involved in the transfer? And, should this be done now or just leave it as is until the younger child is ready to go off to college? Two children, one 17 and one 12, both with Coverdell ESA’s. The 17 year old has dropped out of high school and shows no interest in school (or much of anything else). The 12 year old is a good student. Neither child knows that they have an ESA. Can the older child’s ESA be transferred to the younger, without their being involved in the transfer? And, should this be done now or just leave it as is until the younger child is ready to go off to college?

]]> By: Ryan http://cashmoneylife.com/college-savings-plans-coverdell-educational-savings-account-esa/#comment-22255 Ryan Thu, 11 Mar 2010 15:07:21 +0000 http://cashmoneylife.com/?p=1456#comment-22255 Lisa, ESA contributions can be used for education from K-12 and for higher education, such as college. It looks as though you may be able to make withdrawals for private school, but I recommend contacting your ESA provider for verification. Lisa, ESA contributions can be used for education from K-12 and for higher education, such as college. It looks as though you may be able to make withdrawals for private school, but I recommend contacting your ESA provider for verification.

]]> By: Lisa http://cashmoneylife.com/college-savings-plans-coverdell-educational-savings-account-esa/#comment-22250 Lisa Thu, 11 Mar 2010 14:30:53 +0000 http://cashmoneylife.com/?p=1456#comment-22250 Can you make withdrawels for your child to attend private school? could I essentially add $2000 per year for the tax advantage then make withdrawels to cover the tuition montly costs? Thanks for your help Can you make withdrawels for your child to attend private school? could I essentially add $2000 per year for the tax advantage then make withdrawels to cover the tuition montly costs? Thanks for your help

]]> By: Ryan http://cashmoneylife.com/college-savings-plans-coverdell-educational-savings-account-esa/#comment-21271 Ryan Fri, 15 Jan 2010 20:50:22 +0000 http://cashmoneylife.com/?p=1456#comment-21271 Ben, From what I have seen, the limits are $2,000 for 2010. Ben, From what I have seen, the limits are $2,000 for 2010.

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