The ESA contribution limit is $2,000 per child, per year. What is the Coverdell ESA contribution limit for 2018? The Coverdell has never really taken off and, with the passage of the Tax Cuts & Jobs Act of 2017 and SECURE Act of 2019, we don’t really need it anymore. Below are the MAXIMUM contribution limits to qualified retirement plans, Roth and traditional IRA's, health savings accounts (HSA's) and Coverdell education savings accounts (ESA's) for tax year 2019. Unlike IRA and health saving account (HSA) contributions, ESA contributions are not subject to annual IRS cost-of-living adjustments. Regardless of your or your beneficiary's age, you can receive ESA distributions completely tax-free as long they help cover the cost of books, tuition, school supplies, or any other qualified education expenses. You can make a contribution to a new ESA for a given tax year even if you open the account in the following calendar year. Tax-Deductible Contributions.
It would require a law change for the ESA contribution limit to be adjusted. If you're age 50 or older, you may be able to increase your total IRA contribution to $7,000 for 2019 and $7,000 for 2020, based on MAGI limits; Contribution Deadline. Coverdell Education Savings Accounts (ESAs) allow you to save money for the education expenses of your designated beneficiary.

EXAMPLE: You open an ESA on February 1st, 2020. You can still make 2019 contributions until April 15th even though your account was not open during the 2019 calendar year. Typically, contributions must be made by the tax filing deadline which is now July 15, 2020 for the 2019 tax year. 2019 Contribution Limits for Retirement Plans, IRA's, HSA's and ESA's . A Coverdell ESA is one of the two main types of college savings accounts, along with the 529 Savings Plan.

However, tax-free withdrawals from 529 plans are limited to $10,000 in tuition expenses for K-12 schools, but when using a Coverdell ESA, qualified elementary and secondary education expenses also include books, supplies, equipment, academic tutoring and special needs services in connection with enrollment or attendance at an eligible school.