Tuition withdrawals from Coverdell ESA
Our granddaughters (ages 10 and 14) have already withdrawn $10,000 each for elementary school private school tuition this year from their 529 plans. They have mutual fund balances in their Coverdell ESA accounts for $5000 and $20,000 respectively. Can these funds be used to pay for K-12 private school tuition in the same year as their 529 plan withdrawals? Also, are there any limits on the withdrawals?
Permalink Submitted by Alan - IRA critic on Wed, 2024-09-11 15:47
Distributions can be made from each plan, but if the distributions exceed the total of qualified expenses the taxable portion of the distributions must be pro rated between the two plans.