SIE Exam Question 591: Answer and Explanation

Question: 591

Which of the following is correct regarding Coverdell Education Savings Accounts (ESAs)?

  • A. Private elementary school expenses are permitted to be paid from an ESA.
  • B. The maximum annual contribution to an ESA is $5,000.
  • C. Secondary school expenses are not permitted to be paid from an ESA.
  • D. All of the above are correct.

Correct Answer: A

Explanation:

Money in a Coverdell Education Savings Account (ESA) may be used to pay private elementary and/or secondary school expenses. The maximum contribution to an ESA is $2,000 per beneficiary per year.

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