Well, whether you own a Coverdell ESA or a 529 plan, you may complete a rollover. This allows you to transfer funds from one account to another, even if the beneficiary is different.

A Coverdell Education Savings Account, or ESA, also allows tax-free withdrawals on qualified expenses, and investment options are generally broader than for 529s, Motley Fool reports.

Although 529 education savings accounts are traditionally used for covering future college costs, they're not limited to that. 529 funds may also be used for private elementary through high school ...

Consequently, funds in a Coverdell ESA or 529 plan have a less significant impact on financial aid eligibility than if they were held directly in the student’s name.

Tax Benefits: Coverdell ESA vs. 529 Plans Both of these accounts allow contributions to grow tax-free — unlike investment products subject to capital gains tax.

As college expenses soar, families are prioritizing education savings. Discover how 529 plans can help manage future costs.

Coverdell Education Savings Accounts: A Deep Dive While there are some limitations on income and contributions, as well as other restrictions, a Coverdell can be a bit more flexible than a 529 plan.

Like the funds from a Coverdell ESA, funds from a 529 plan can only be used for qualified education expenses. This includes up to $10,000 per year for K-12 tuition, as well as tuition and fees for ...

In fact, custodians/owners of 529 plans have more agency over how the funds are allocated relative to other investment accounts: 529 plans and Coverdell Education Savings Accounts created by the U ...