Coverdell Education Savings Accounts
A Coverdell education savings account is a tax-advantaged educational savings account that you can establish for a child under the age of 18 (this limit does not apply to beneficiaries with special needs). The child does not need to be your dependent. Contributions to a Coverdell ESA can total up to $2,000 each year. While contributions are made with after-tax dollars, distributions used to pay qualifying education expenses are not included in income.