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PERSONAL FINANCE GLOSSARY

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Current TermCoverdell Education Savings Account
Coverdell Education Savings Account
Formerly known as the Education IRA. An account created to pay the higher education expenses of its beneficiary. Contributions, which are currently limited to $2,000 a year, are not tax deductible but any accumulated earnings are tax free if used to pay eligible bills. Contributions are not allowed after the child reaches age 18.

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