Frequently Asked Questions
Select a Category:
Coverdell
14. Why is the age 30 important?
     

All assets must be distributed from the CESA by the time the Designated Beneficiary attains age 30.  Prior to that time they can be used to pay qualified education expenses or rolled over to another qualified family member.
 
1. What is a Coverdell Education Savings Account (CESA)?
2. How much can be contributed for each child in a given year?
3. What is a qualified expense?
4. Who may contribute to a Coverdell Education Savings Account?
5. Other than the Financial Organization, who are the parties involved in the CESA?
6. Am I allowed to change the beneficiary?
7. Do I have to pay taxes on the account earnings?
8. Who is a member of the family?
9. Can fund be rolled over from one CESA to another CESA established for another family member?
10. Can a CESA be rolled over to a 529 College Savings Plan?
11. Can funds from a Qualified Tuition Plan (529 Plan) be rolled over to a CESA?
12. How long can you make CESA contributions for the Designated Beneficiary?
13. What is the deadline for CESA contributions?
15. Does the Designated Beneficiary get control of the money when he or she reaches the age of majority?
16. Do CESA’s mirror IRA’s in that the Contributor needs to have earned income?
17. What happens if the funds are not used for education purposes?
18. What happens if the annual contributions for a child exceed the $2,000 limit?
19. Are transfers between CESA’s non-reportable as they are with IRA’s?
20. What reporting is required to the financial organization in the case of a trustee-to-trustee transfer?
21. Will the CESA prevent me from taking advantage of other education savings options?
22. What are the tax consequences if the Designated Beneficiary doesn’t need the money because they have received a scholarship?
23. Are contributions to a CESA tax deductible?
24. What does the age waiver for a special needs beneficiary entail?
Still Need Help? Ask An Expert

Do you want guidance in selecting a 529 plan?  Click the Contact Us button below and speak to a live advisor, or drop us an email and we will be pleased to assist you. If you are a do-it-yourself person, click the Professor for his assistance in sorting and ranking plans or click on the National Map to locate a specific state's 529 program.

 

 

 

 
 
Site contents � 2001- Specialized Investments Group, Inc. d/b/a 529 Solutions. Site design coordination through Risk Design International.