You discuss Coverdell Education Savings Accounts (CESAs) with Harry and Alice as a possible college funding vehicle for Ali. Which of the following statements describing a provision of a CESA as used in the education funding process is CORRECT? A) All funds within the Coverdell ESA must be used before the student reaches age 25. B) The beneficiary may accept annual contributions of $2,000 each from multiple contributors. C) The annual contribution limit for a single beneficiary is $2,000. D) Withdrawals for qualified education expenses are taxed at the student’s income tax rate rather than the parents’ rate.
Added by Mar D.
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