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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.
A SARSEP is a simplified employee pension (SEP) plan set up before 1997 that includes a salary reduction arrangement. Under a SARSEP, employees can choose to have the employer contribute part of their pay to their Individual Retirement Account or Annuity (IRA) set up under the SARSEP (a SEP-IRA). A SARSEP may not be established after 1996. However, for SARSEPs set up before 1997, eligible employees hired after 1996 must be allowed to participate. See IRS Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans) for detailed information.