A Coverdell education savings account, formerly called an education IRA, is a tax-advantaged account that allows you to make after-tax contributions to pay for college tuition and qualified educational expenses. In 2020, you can contribute up to $2,000 per year to pay for educational expenses, including those for primary and secondary schools. Withdrawals are tax-exempt up to the amount of qualified expenses. The amount you can contribute to a Coverdell ESA is phased out at higher incomes. For single persons, the phase-out begins when modified adjusted gross income reaches $95,000. Allowable contributions phase out at $110,000. For married persons filing a joint return, the phase-out limits are exactly twice as much. The phase-outs are not adjusted for inflation.
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