The bad news is that tuition costs keep rising, but there's good news too! Tax laws continue to make the Coverdell Education Savings Account a better alternative for saving for your child's education.
If you meet earnings requirements, you can contribute up to $2,000 per year until your child's 18th birthday. And here's where the good news comes in: no taxes apply to the account's earnings, and withdrawals are tax- and penalty-free as long as they go towards education expenses.
It's a tax code that's downright charitable, don't you think?
Dividends Paid: Quarterly
Minimum Balance: $0