A much smaller annual limit than a 529 plan, with an income-based phase-out 529 plans don’t have — but broader K-12 use than a 529’s narrower tuition-only provision.
How it works
The $2,000 annual limit per beneficiary phases out proportionally as MAGI moves through the applicable range, reaching zero at the top of the range.
What this does not include
The $2,000 limit applies across all contributors to a single beneficiary combined — this calculator computes the phased-out ceiling for one contributor’s MAGI, not a multi-contributor coordination check.
How to use this calculator
- Enter your MAGI and the phase-out start and range for your filing status.
Frequently asked questions
Can a beneficiary have both a Coverdell ESA and a 529 plan?
Yes — the two aren’t mutually exclusive, and many families use both for different purposes given the Coverdell’s broader K-12 eligible expenses.
Does the $2,000 limit apply per contributor or per beneficiary?
Per beneficiary — the combined total from all contributors (parents, grandparents, others) can’t exceed $2,000 in a year, even if several people want to contribute.
What happens if unused funds remain when the beneficiary turns 30?
They generally must be distributed (potentially triggering tax and penalty on earnings) or rolled over to another family member’s Coverdell ESA before that age.
