However, 529 plans have more limitations on qualified expenses. Coverdell ESA vs. 529 Plan: Tax Benefits. Both of these accounts allow contributions to grow tax-free — unlike investment products ...

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.

Until a few years ago, Coverdell plans had one big advantage over 529 plans: Coverdells could be used for K-12 education expenses as well as college. However, that distinction no longer applies.

A Coverdell Education Savings Account, or Coverdell ESA, is the other main option designed to help Americans save for college. Unlike 529 savings plans, Coverdell ESAs are not state-run.

Coverdell Education Savings Accounts, known as ESAs, are tax-advantaged accounts designed to help families save for elementary, secondary and college expenses. In many ways, these accounts operate ...

Coverdell ESA Vs. 529 Plans. Originally, one of the Coverdell ESA’s biggest advantages over the 529 plan was that it allows tax-free withdrawals to pay for elementary and secondary expenses.

Coverdell Education Savings Accounts, known as ESAs, are tax-advantaged accounts designed to ... It’s now harder to see the advantages of opening an ESA instead of a 529 plan, ...

Coverdell Education Savings Accounts vs. 529 Plans ESAs may be established at brokerages and other financial institutions. These accounts are comparable to the 529 tax-free college savings plan.

Unlike a 529 plan, where you'll typically have a menu of investment options to choose from, a Coverdell ESA can give you greater control of the account's investment strategy.

Ask Matt: Both plans have pros and cons but for most people, the 529 is the best way to go. Looking for a pro?🔎 What to know 📋 How to talk money 🤑 💸 to your 📩 U.S. Politics Sports ...

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.