• Annual contribution limits - The yearly contribution limit is $2,000, which is not tax deductible. Eligibility to contribute to a Coverdell Education Savings Account is determined by adjusted gross income (AGI). The phase-out range for single tax filers is $95,000-$110,000 AGI and $190,000-$220,000 AGI for joint filers
• Definition of "qualified expenses" - Qualified expenses include tuition, fees, books, supplies, equipment, room and board, academic tutoring, special needs services uniforms, transportation and the purchase of computer technology or equipment used while attending an eligible educational institution
• Definition of "eligible educational institution" - Eligible educational institutions include public, private or religious elementary or secondary schools (grades K-12), as well as colleges, universities, vocational schools or other post-secondary educational institutions eligible to participate in a student aid program administered by the U.S. Department of Education. This is one of the features that makes Coverdell Education Savings Accounts different from 529 plans-the latter are only for post-secondary education expenses, while Coverdell Education Savings Accounts can be used to cover qualified K-12 expenses
• Simultaneous contributions - During the same tax year, you can make contributions to a Coverdell Education Savings Account on behalf of the same beneficiary for whom you make a contribution to a 529 College Savings Plan. However, any contribution beyond the federal gift tax exclusion amount may be subject to gift tax

Talk to a UBS Financial Advisor to discuss whether a Coverdell Education Savings Account is suitable for your education funding needs.





Neither UBS Financial Services Inc. nor any of its employees provide legal or tax advice. The tax implications of a Coverdell Employee Savings Account should be discussed with your legal advisor and/or tax advisors. The preceding information should not be relied upon as a specific tax-related recommendation and does not constitute a solicitation or recommendation to purchase a specific security.