Which of the following statements about a Coverdell ESA is not correct?
A. Taxpayers may be phased out from contributing to a Coverdell ESA because of their level of modified adjusted gross income
B. Assets in a Coverdell ESA accumulate on a tax-deferred basis and earnings are tax-free is used for qualified educational purposes
C. Coverdell assets can be used for elementary, secondary and higher education
D. Every contributor can make an annual $2,000 contribution to a Coverdell for the same beneficiary
Answer:D
Which of the following statements about a Coverdell ESA is not correct?
A. Taxpayers may be phased out from contributing to a Coverdell ESA because of their level of modified adjusted gross income B. Assets in a Coverdell ESA accumulate on a tax-deferred basis and earnings are tax-free is used for qualified educational purposes C. Coverdell assets can be used for elementary, secondary and higher education D. Every contributor can make an annual $2,000 contribution to a Coverdell for the same beneficiary