Education Savings Plans and Qualified Expenses

piggy bankBy Patricia M. McCoy, CPA

The popularity of educational savings accounts such as 529 Qualified Tuition Plans (QTPs) and Coverdell Education Savings Accounts (ESAs) continues to grow, and we are taking this opportunity to provide a broad overview of these plans, along with some details of deductions allowed for the distributions. 529 and Coverdell accounts are valuable tax planning tools for ensuring that your loved ones have access to funds set aside specifically for educational purposes.