Coverdell Education Savings Account
An ESA is another savings program for educational expenses which can be set up for kids under 18 years of age. The annual contribution limit is $2,000 per child.
Review your tax situation now so you have some idea what tax bracket you will fall into this year.
When ESA’s were created they were named Educational IRAs and limited to a $500 contribution. With a name change they became the Coverdell Education Savings Accounts.
The standard deduction for couples filing jointly is $11,400 and for singles it is one half that at $5,700 for this year.