Coverdell Education Savings Accounts at Risk in Tax Debate

Lindsey Burke / December 07, 2010

Lost in the framework agreement between the Obama Administration and congressional Republicans on extending tax relief is the future of Coverdell IRAs, savings accounts designed to help families pay for K-12 education expenses and tuition. Like their college counterparts, Coverdell IRAs allow parents to save money for K-12 education expenses tax-free.

The Administration has had no problem bailing out special interests in the education industry, passing a $10 billion union assist this past August. Coverdell savings accounts, on the other hand, have provided tax relief for families who want to ensure that their children receive a quality education. They are the only federal tax mechanism empowering parents with more school choice options. Robert Enlow, President and CEO of the Foundation for Education Choice, writes in yesterday’s Washington Times: (more…)