Americans have opened Coverdell ESA accounts to pay for qualified educational expenses for a designated beneficiary.
An ESA must be established and contributions made while the beneficiary is under age 18 (unless a special needs beneficiary).
ESA distributions that aren’t more than the beneficiary’s adjusted qualified education expenses for the year are tax-free.
ESA assets may be rolled over to another ESA. However, the IRS has clarified that the one per year rollover rule also applies to rollovers of ESA accounts. Trustee to trustee transfers are still unlimited.