Question

Question 1 of 10

2 Points
Which of the following makes the Coverdell Education Savings Account
unique?
A. It can be used only to pay for college tuition costs.
B. It offers few investment choices.
O
C. It offers many investment choices.
O
D. Unused funds return to the account holder.
SUBMIT

Answer 1

C. That it offers many investment choices.

Answer 2

The correct answer is C) it offers many investment choices.

The Coverdell Education Savings Account is unique in that it offers many investment choices.

Formerly known as "Education IRA," the Coverdell Education Savings Account -reformed in 2002- offers tax-free investments and can be retired tax-free in the case it is used on qualified education. As its name indicates, the Coverdell Education Savings Account is aimed to be used as an investment to pay for education in K12 school or university. The Coverdell Education Savings Account was part of the Taxpayer Relief Act of 1997.