Planning for your child’s future can be a stressful task, but with the help of the Coverdell Education Savings Account (ESA), also known as the Educational IRA, this task can be made easy.
The Educational IRA is an investment tool created for the purpose of paying for the future cost of a child’s education. This plan allows total after-tax contributions of $2,000 per year for each child until they reach the age of 18. These contributions and their subsequent earnings are tax-free when withdrawn to pay for qualified education expenses.
