By Reyna Gobel
- Anyone can contribute to an ESA on behalf of a child.
- ESAs must be started and funded before age 18, but after a child is born.
- Co-ordinate with other contributors as much as possible so you don't accidentally cause your son or daughter to pay taxes.
- The maximum contribution is calculated two ways: maximum contribution per individual and maximum per child.
- You can't contribute to an ESA if your modified adjusted gross income is above $110,000 as a single person or $220,000 as a married couple. Contributions are calculated on a sliding scale for individuals with MAGIs above $95,000 and below $110,000. Married couples contribute on a sliding scale if their combined MAGI is above $190,000 and below $220,000.
- Contributing to an ESA isn't the only way to save for your child's education. Also consider 529 plans. Contributions aren't based on income and can be larger amounts.
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