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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 Coverdell Education Savings Account or Coverdell ESA* (formerly known as an Education IRA) is a custodial saving account used for paying educational expenses. Taxpayers may make nondeductible cash contributions of up to $2000 a year for each child under age 18 (or for a special needs beneficiary).