An investment in education is always money well spent. Help your kids save for their education with a Coverdell Education Savings Account. Formerly called an Education IRA, this account earns tax-free interest when used to pay the qualified education expenses of a designated beneficiary.
Deposits and interest grow tax-free
Distributions are tax-free as long as they are used for qualified education expenses (tuition and fees, books, supplies, board, etc.)
If distributions exceed qualified education expenses, that portion is taxable
Virtually all accredited public, private, and religious institutions are eligible