Anonymous
Anonymous asks:
Q:

Question about Coverdell contribution: how to make when we exceed income limits?

My husband and I exceed the income limits to contribute to our daughter's Coverdell account, should we gift the money to her (and how do we do that) or have her grandparents make the contribution?  Thank you.
In Topics: Financial planning for college
> 60 days ago

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Answers (1)

kevin_edu
kevin_edu writes:
Since you are trying to circumvent the system, your best bet is to talk to an accountant with experience regarding financial planning for college. Again, your accountant should also be able to answer your question about how to properly "gift" money to your daughter and if she can fund her Coverdell account. They will also be able to advise if this is the appropriate mechanism for you to maximize your tax benefit while you save for your child's college expenses.

Education.com is a good resource for information on the multitude on savings instruments available for funding your child's education:
http://www.education.com/reference/article/pay-college-saving-parents-resources/

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