General Principles

Question 1

Coverdell Contribution Limits

Answer 1

$2000/year for each beneficiary

Question 2

Coverdell Taxability

Answer 2

Not tax deductible when contributed, grows tax free

Subject to phase out for contributing

Question 3

Coverdell Age Limits

Answer 3

Must be used before student turns 30

Question 4

Qualified Coverdell expenses

Answer 4

Qualified higher education expenses, expenses for private elementary, secondary education, tuition, room, and board

Question 5

Expected Family Contribution

Answer 5

Index number that colleges use to determine how much financial aid students will rcv, based off of FAFSA

Parent Income
Parent Assets: Everything but home equity, regular car, cash value of life insurance, and retirement funds
Student Income
Student Assets: any custodial accounts and single owned accounts