Business and Personal Finance Dictionary

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• EDUCATION IRA
  
  A savings plan to pay for a child's education. In 2001, these plans were renamed the Coverdell Education Savings Account in honor of the late U.S. Sen. Paul Coverdell. They allow for tax-favored savings to help pay a child's public or private schooling costs at any level. Coverdell earnings and withdrawals are tax-free, but you can't deduct the contributions from your income tax. The money contributed to a Coverdell account doesn't count against any other combined annual IRA contributions.
  
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