0
For which plan or plans is knowing the withdrawal restrictions important A. Both 529 plans as well as the Coverdell Education Savings Account B. The 529 college savings only C. The Coverdell Education?
Wiki User
∙ 7y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Which plan or plans is knowing the withdrawal restrictions important?
both 529 plans as well as the coverdell education savings account
What plan or plans is knowing the withdrawal restrictions important?
both 529 plans as well as the coverdell education savings account
Is physical education important?
Physical education is important
Why is education so important in the US?
Education is so important. It spreads awareness.
What is more important character or education?
education
How To Distinguish Between A 529 Plan And A Coverdell Account?
While the 529 Savings Plan has become almost synonymous with college education savings, far fewer people are aware of another option that is available for the same goal - the Coverdell Education Savings Account. The good news is that you can use both for education savings although there are some important differences between the two that can make one a better choice for your situation. The two accounts are similar in that they both provide for tax free growth of the account balance provided that the funds are used for qualified education expenses. Beyond that, the characteristics of the Coverdell account take on more similarities to an IRA than they do to a 529. 529 plans are run and administered by each individual state. Each state chooses a company (or companies) to work with to provide a menu of investment options for savers. With a 529 plan, an investor is required to choose an option from the available menu. Unlike the 529 plan, the Coverdell account allows you to invest in just about any security under the sun - stocks, bonds, mutual funds and CDs are all eligible. Contribution limits are also different between the two accounts. 529 plans have contribution limits in the hundreds of thousands of dollars so hitting the limit is a non-factor for most people. The Coverdell, however, has a $2,000 annual contribution limit per eligible child. Coverdells also require the balance to be moved out of the account by the time the beneficiary hits the age of 30 whereas the 529 account has no such restriction. The other major difference is that balances in the Coverdell account are eligible for both college and secondary school expenses whereas the 529 account is only eligible to cover college expenses. This means that if you have a child who attends a private high school, the Coverdell account would be the only account type that would allow you to save money tax-free to go towards tuition expenses. Both are great savings vehicles for educational expenses. Just be sure you know the ins and outs of both accounts before you proceed.
How is education important in Canada?
because education is important to do anything even to play hockey
Educateion is important for woman?
first spell EDUCATION right that sucks if you are a women because education is obviously important for you....... first spell EDUCATION right that sucks if you are a women because education is obviously important for you.......
What is the most important thing to look for in a financial institution?
there are no fees or restrictions
What was not important quality for government officials according to Confucius?
Wuwei - withdrawal from worldly affairs
What is the most important about education?
The learning partThe learning partThe learning part
Is boychild education more important than girlchild education?
no, its not.
