However, it’s important to consider some restrictions that come with Coverdell ESAs, particularly regarding contribution limits and withdrawal rules. These accounts have a maximum annual contribution limit of $2,000, and contributors can no longer add funds once the beneficiary turns 18. Furthermore...
1. Not saving enough Over half (59.2%) of our survey respondents weren’t sure if 529 plans or Coverdell ESAs have annual contribution limits. While there is no limit to the amount you can deposit into a 529 plan each year, annual contributions for tax year 2023 cannot exceed $2,000 pe...