Past issues Nov/Dec 2007 Sept/Oct 2007 Jul/Aug 2007 May/Jun 2007 Mar/Apr 2007 Jan/Feb 2007 Nov/Dec 2006 Sept/Oct 2006 Jul/Aug 2006 May/Jun 2006 Mar/Apr 2006 Jan/Feb 2006 Winter 2005 Fall 2005 Summer 2005

|

Get MOM Mag Where to find MOM How to subscribe

|

Contribute to MOM Book feedback Congratulate a new mom Nominate SuperDAD Share your experiences Give mom a break How do you pamper mom? Favorite escapes Make moms laugh Web recommendations What they didn't tell me We want you to be a model We want you to be a writer

|

About us MOM Magazine Your MOM team MOM contributors

|

Meet our advertisers

|

Contact MOM Contact info Write to MOM Want to advertise?

Daughter Sophia, four has taught Laura that being a mom is one rewarding, run-away ride.

Here's a rundown on the Coverdell ESA:

• Coverdell education savings accounts offer you a tax-free way to save for your child's elementary, secondary, and college education expenses.
• You can contribute up to $2,000 a year to an education savings account for each child. You can make contributions anytime after a child is born until the child's 18th birthday (with an exception for special needs beneficiaries).
• Although contributions aren't tax deductible, earnings accumulate tax deferred. Then withdrawals to pay qualified education expenses are free from federal taxes.
• Those who meet the income limits—including parents, grandparents, friends, other relatives and children themselves—are eligible to contribute.
• If you're a married taxpayer who files jointly with modified adjusted gross income of less than $190,000, you qualify for the full contribution. If your income is between $190,000 and $220,000, you qualify for a partial contribution. If you're a single taxpayer these limits are $95,000, and between $95,000 and $110,000 respectively.
• If your income exceeds these eligibility limits, you can give money to a child and he or she can make the contribution (assuming the child meets the income limits).
• For more tax rule details, refer to IRS Publication 970, Tax benefits for higher education.

Learn more
For more financial education tools and help figuring out the best balance of saving, borrowing and investing—including free seminars and online resources—call or stop by OSU Federal or go to www.osufederal.com. OSU Federal, Your Community Credit Union, is open to anyone who lives, works or attends school in Benton, Lincoln, Linn, Marion or Polk County.

© 2006 Credit Union National Association. This article adapted and reprinted by OSU Federal Credit Union with permission from Home and Family Finance Resource Center. See the full article about saving for college at www.osufederal.com.