Education Savings Accounts at Risk in 2011, Unless Congress Acts
Patrick Tyrrell /
Coverdell Education Savings Accounts were created in 2001 to empower parents with greater options for their children’s education, but unless Congress takes action, those accounts could change in 2011.
Currently, parents who send their children to private schools because they’re not satisfied with the public school quality or culture have to pay twice: once in taxes for public schools, and a second time for their private school tuition. Coverdell accounts are one small way to help lift some of this burden by letting parents save for these education costs in tax-free accounts.
The accounts allow parents to keep more of their own money to be used for paying educational expenses for children in grades Kindergarten through 12th grade. They may also be used for college expenses without being hit with a tax on the money that’s been saved for those expenses.