Want to save for education? Make 2016 ESA contributions by December 31

December 21, 2016





If you don’t make a 2016 Coverdell Education Savings Account (ESA) contribution by December 31, the opportunity will be lost forever. Contributions aren’t deductible, but ESAs can grow tax-deferred and withdrawals used for qualified education expenses (not just for college, but also for elementary and secondary school) are tax-free. The annual contribution limit is $2,000 per beneficiary, subject to an income-based phaseout. If you don’t contribute $2,000 in 2016, you can’t add that to the 2017 limit and contribute $4,000 next year. For more details, contact us.