• The money must be used by the time the student is 30.
• You usually can’t open an account if you make more than $95,000 per year, or $190,000 as a married couple.
• Money is tax-free, as long as it’s used for qualified educational expenses. If you use it for something else, you have to pay taxes and a 10 percent penalty fee.
• The money from this account belongs to the student after he or she turns 18, even if they don’t use it to pay for college.
• You can only save $2,000 a year per student.
• You can save money in both 529 and ESA plans at the same time!

Find low-cost providers of Coverdell.