A Coverdell ESA grows tax-free for education. See what regular contributions become.
A Coverdell ESA calculator projects the tax-free growth of a Coverdell education savings account from your current balance and annual contributions.
A Coverdell Education Savings Account grows tax-free, and withdrawals for qualified education expenses, including K-12, not just college, are tax-free too. It offers broad investment choice, but contributions are capped at $2,000 per year per child and phase out at higher incomes, making it smaller in scope than a 529 plan.
The Coverdell's advantages are investment flexibility and K-12 eligibility; its limits are the low contribution cap and income phase-outs. Many families use a 529 for its much higher limits and add a Coverdell for flexibility, or choose one based on their situation. Funds must generally be used by the beneficiary's age 30. This projects growth, not a full comparison.
A tax-advantaged education savings account that grows tax-free for qualified K-12 and college expenses, with a $2,000 annual contribution limit per child.
529s allow much higher contributions; Coverdells offer more investment flexibility and cover K-12. Some families use both, or choose based on their needs.
Contributions are capped at $2,000 per year per child and phase out at higher incomes. Funds generally must be used by the beneficiary's age 30.
See the exact formula and a worked example on our methodology page.