Should Coverdell Account Owners Run for Cover?
The education savings vehicle's use for precollege expenses is set to expire at the end of this year.
Question: I've been contributing to a Coverdell Education Savings Account for years to help fund my son's private elementary school tuition, but now I hear some of the tax advantages of such accounts might be going away. What's going on?
Answer: Amid all the talk about the expiring Bush tax cuts and other impending changes to the country's fiscal picture, one change that could have a dramatic impact on Coverdell accounts--and the families who use them to pay elementary and secondary school costs--has gotten little attention.