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Form 5305 EA Rev October Coverdell Education Savings Custodial Account

Form 5305 EA Rev October Coverdell Education Savings Custodial Account

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Instructions and help about Form 5305 EA Rev October Coverdell Education Savings Custodial Account

in this video we're gonna discuss the difference between section 529 plans and Coverdell accounts so both of these plans are tax advantaged ways that you can save money for your child or your relatives educational expenses in both cases the contributions are not tax deductible but the earnings grow tax-free however there's some really important differences between these plans that you should understand and first off the Coverdell account can be used for elementary secondary higher education so if your kid is gonna be going to high school and you want to save money for a private high school or for college or for grade school you can set up a Coverdell account however the section 529 plans are only for college they're only for higher education expenses so you should just bear that in mind now we'll Coverdell accounts there's a limit on the amount that the beneficiary that's that's a student who is going to be receiving these funds u

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