Coverdell Education Accounts

Coverdell education accounts, also known as CESA plans or an Education IRA, are useful investment tools for parents of college-bound children. These accounts are set up solely for the purpose of paying the college expenses of the beneficiary. Coverdell accounts have a variety of advantages and tax benefits as well.

The advantages of a Coverdell account include the following:

Disadvantages include:

You may open a Coverdell account any most banks or brokerages. However, despite the the advantage of these accounts, many financial advisors feel that 529 plans are still a superior investment strategy for education expenses.