What are the main differences between a Coverdell Education Savings Account and a 529 plan?

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2026-05-05 22:50

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The main differences between a CoverDELL Education Savings Account and a 529 plan are the contribution limits, eligible expenses, and investment options. A CoverDELL account has lower contribution limits and can be used for K-12 expenses, while a 529 plan has higher contribution limits and is typically used for college expenses. Additionally, 529 plans offer more investment options compared to CoverDELL accounts.

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