### Question
Can you define what Coverdell education savings account means?


### Answer
**Coverdell education savings account** is defined as the following in *26 U.S.C. § 530*:

> a trust created or organized in the United States exclusively for the purpose of paying the qualified education expenses of an individual who is the designated beneficiary of the trust (and designated as a Coverdell education savings account at the time created or organized), but only if the written governing instrument creating the trust meets the following requirements:


(A) No contribution will be accepted—


(i) unless it is in cash,


(ii) after the date on which such beneficiary attains age 18, or


(iii) except in the case of rollover contributions, if such contribution would result in aggregate contributions for the taxable year exceeding $2,000

#### Citation:
  - *26 U.S.C. § 530*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter F-Exempt Organizations > PART VIII-HIGHER EDUCATION SAVINGS ENTITIES**

