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CESA (Education IRA) Coverdell Education Savings Account (Education IRA) 1  A tax-free educational savings account established for the benefit of a child (known as a designated beneficiary) up to the age of 18.  Allows a maximum non-deductible annual contribution of up to $2,000 per child per year.
An IRA is an Individual Retirement Arrangement which falls under IRS Publication 590. There are many types of IRA accounts such as Traditional IRA, Roth IRA, SEP IRA and Simple IRA. IRA's came about in 1974 through the Employee Retirement Income Security Act (ERISA). There are limits as to how much you can contribute each year and when you can pull your money out without penalty.