Daily Archives: August 27, 2012

2012 may be the last year to use tax-free ESA funds for precollege expenses

Coverdell Education Savings Accounts (ESAs), like 529 savings plans, offer a tax-smart way to fund education expenses: Contributions aren’t deductible for federal purposes, but plan assets can grow tax-deferred Distributions used to pay qualified expenses (such as tuition, mandatory fees, books, equipment, supplies and, generally, room and board) are income-tax-free for federal purposes and may […]