|
Coverdell Education Savings Account - ESA
What does it mean?
A tax-deferred account created by the U.S. government to assist families in funding educational expenses.
In Other Words...
Formerly called an education IRA, the ESA provides families with the ability to increase investment earnings through tax-deferral so long as the funds are used for educational purposes. For example, if you contributed $500 to an ESA and it appreciated to $5000 in ten years, the earnings would not be taxed until the owner of the account was enrolled into a post-secondary institution. Furthermore, the gains are taxed at the account holders' rate rather than that of the contributor, which is typically higher.
Related Links
Sorry, there are no related links.
Related Terms
529 Plan | Baccalaureate Bond | Income Tax | IRA
1 |
A | B |
C | D |
E | F |
G | H |
I | J |
K | L |
M | N |
O | P |
Q | R |
S | T |
U | V |
W | X |
Y | Z
|
