Question

Funds left over from a Coverdell Education Savings Account after all education expenses are paid go back to whom ?

A. The beneficiary
B. The financial institution
C. The educational institution
D. The account holder

Answer 1

A. The beneficiary

Step-by-step explanation:

Coverdell Education Savings Account is an investment plan that is used to cover the beneficiary's future education expenses and it has tax advantages. When this account is opened, the beneficiary must be under 18 and when the person graduates and all the expenses has been paid and there is money available on the account, it can be withdrawn by the beneciary but it will be subject to taxes. According to this, funds left over from a Coverdell Education Savings Account go back to the beneficiary.