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PERSONAL FINANCE GLOSSARY

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Current TermEducation IRA
Education IRA
Renamed the Coverdell Education Savings Account. 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 generally not allowed after the child reaches age 18.

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