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What Is a Coverdell ESA?

By Matthew Frankel, CFP – Updated Sep 13, 2025 at 4:45PM

Key Points

  • Coverdell ESAs offer tax-free growth on investments for educational expenses.
  • Contributions to Coverdell ESAs max at $2,000/yr, less than most 529 plans.
  • Investment options in Coverdell ESAs are more flexible than in 529 plans.
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