Ask Terry Questions Coverdell ESA tax free distributions?

Coverdell ESA tax free distributions?

By Terry Savage on January 27, 2015 | College Savings / Student Loans

I would like to know if any of the following expenses are reimbursable (tax free) from a Coverdell ESA?

SAT/ACT testing
SAT/ACT tutoring
Submitting SAT/ACT scores to colleges
College application fees (typically $60-$80 per app)
Computer for college
Any other pre-college expenses I may have missed?

Thank you

Terry Says:  There are so many features of a Coverdell account that I am going to refer you to my favorite website for college savings plan issues — SavingforCollege.com.  Here’s a link to their main feature on Coverdell Accounts:  http://www.savingforcollege.com/articles/coverdell-ESA-versus-529-Plan   

If that doesn’t have specific answers for all of these issues, you can ask them directly.

 

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