Coverdell Education Savings Account

Business, Legal & Accounting Glossary

Definition: Coverdell Education Savings Account


Coverdell Education Savings Account


Full Definition of Coverdell Education Savings Account


Formerly called the education IRA, the Coverdell education savings account is an investment plan used for funding a child’s college education. The maximum amount one may contribute to a Coverdell education savings account changes over time, and there are several rules one must follow to avoid penalties. For example, any funds in the Coverdell education savings account must be distributed to the beneficiary before his/her thirtieth birthday. The Coverdell education savings account is modelled after the traditional individual retirement account, or IRA. Although contributions to a Coverdell education savings account are not tax-deductible, earnings on it are, provided that they are used to pay for qualified education expenses. IRS Publication 970 offers more information on the Coverdell education savings account.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/coverdell-education-savings-account/
Modern Language Association (MLA):
Coverdell Education Savings Account. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 28, 2024 https://payrollheaven.com/define/coverdell-education-savings-account/.
Chicago Manual of Style (CMS):
Coverdell Education Savings Account. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/coverdell-education-savings-account/ (accessed: March 28, 2024).
American Psychological Association (APA):
Coverdell Education Savings Account. PayrollHeaven.com. Retrieved March 28, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/coverdell-education-savings-account/

Definition Sources


Definitions for Coverdell Education Savings Account are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February, 2020 | 0 Views.