Comments on: College Savings: Coverdell ESA vs. the 529 vs. Coffee Cans in the Backyard

By: Where Do You See Yourself in 10 Years?

Where Do You See Yourself in 10 Years? — Wed, 24 Mar 2010 03:54:03 +0000

[...] studying computer science at a state University that was paid for by my yearly contribution to his Coverdell Educations Savings Account. Silas is doing well in school and works part time as well as helps instruct Tae Kwon Do at our [...]

By: New Year’s Resolutions Suck How About Setting Goals and Measuring Them?

New Year’s Resolutions Suck How About Setting Goals and Measuring Them? — Thu, 31 Dec 2009 12:01:36 +0000

[...] Fund a Coverdell Education Savings Account for each boy by the end of 2010. EXECUTION PLAN: Save $4000 once emergency fund is complete by [...]

By: 10 Things Your Baby Doesn't Need that Can Fund Their College Education.

10 Things Your Baby Doesn't Need that Can Fund Their College Education. — Mon, 09 Nov 2009 12:33:05 +0000

[...] take our savings from above (we’ll exclude the house and minivan) and invest it in a Coverdell Education Savings Account. If you put the $917.99 in an ESA assuming a 10% rate of return on a low fee index based mutal [...]

By: Jason @ Redeeming Riches

Jason @ Redeeming Riches — Fri, 21 Aug 2009 18:12:58 +0000

FYI: Some states offer state income tax credits for contributions into their own 529 plans. For example, I live in Indiana and they offer a 20% credit up to $1,000 for contributions into the IN plan. Of course there are stipulations, but this may entice some people to go for the 529 and get a break on state taxes. .-= Jason @ Redeeming Riches´s last blog ..Friday Finance Round Up "“ August 21, 2009 =-.

By: paul

paul — Fri, 21 Aug 2009 15:14:34 +0000

Thanks for the additional details JoeTaxpayer. It’s a struggle to make this still readable but provide the high level details.

By: JoeTaxpayer

JoeTaxpayer — Fri, 21 Aug 2009 01:21:57 +0000

Remember, if you are rolling dough, the 529 is still subject to gift tax limits ($13K/person gifted to), but the 529 has a special rule that you can gift up to 5 years in advance, e.g. this year gift $65K and none for next 4 years. If you are married that’s $130K from the two of you.
Also, the Coverdell permits expenses for high school, 529 is just College or higher.
Lastly, the 529 allows for changes in beneficiary, so what the kids don’t use, the grandkids can. A great was to get money out of your estate if that appeals to you.
.-= JoeTaxpayer´s last blog ..New Credit Card Law Starts Today =-.