A Coverdell Education Savings Account helps clients save for their children's education by offering federal tax-free earnings and withdrawals for qualified expenses such as tuition, books, computers and room and board. There is no minimum required annual contribution, and clients may contribute as much as $2,000 per child per year if they meet the income requirements.
With a Coverdell Education Savings Account clients get:
Choices - Unlike 529 College Savings Plans, a Coverdell Education Savings Account can also be used for expenses associated with attending a public or private elementary or secondary school.
Flexibility - Fortunately, they don't have to choose between plans. They can open a 529 College Savings Plan and a Coverdell Education Savings Account for each of their children.
No maintenance fees - TD AMERITRADE doesn't charge maintenance fees so more of their money will be working toward the goal.
Coverdell contribution limits and income requirements:
Your clients are eligible to contribute the full $2,000 per year if they meet the following income guidelines:
Single filers: modified Adjusted Gross Income (AGI) must be less than $95,000.
Married couples: modified AGI must be less than $190,000.
TD AMERITRADE does not provide tax advice. We suggest that clients seek the advice of a tax-planning professional with regard to personal circumstances.
